The recession has saddled Britain with its biggest peacetime deficit, placing the Government under pressure to implement cutbacks across the public sector.

 

Some reports have stated the Olympics could be targeted as an area to make savings but Coe is adamant expenditure on the Games will not be reduced.

 

He said: "The budgets are set so stories that the Olympics might suffer from cuts in public spending are inaccurate.

 

"The budget for the infrastructure is set, remains in place and is resilient.

 

"The budget for staging has nothing to do with public spending.

 

"We have to raise every penny we spend from the private sector.

 

"We've got our partners and sponsors in place so it really doesn't impact on us at all.

 

"So far we've raised more money than any host city has ever raised - just over half a billion pounds.

 

"That's 70 per cent of the target we set with three years to go, so financially we're in good shape.

 

"It's not an easy project but preparations are going very well.

 

"Construction is ahead of schedule and we are continuing to raise a lot of money in the organising committee.

 

"Putting on a Games is always a big challenge but we're winning that challenge at the moment.

 

"I'm pleased with where we are."

 

Coe joined fellow double Olympic gold medalist Daley Thompson on the penultimate leg of the 'Breaking the Cycle of Violence' ride.

 

Thompson will deliver a report to the Government tomorrow calling for sport to be used to tackle the growing problems of youth crime and gang violence.

 

Coe joined Thompson (pictured) on the penultimate leg of today's ride from Newbury where he was also accompanied by four-time Olympic gold medallist rower Sir Matthew Pinsent, New Zealand rugby legend Sean Fitzpatrick and Argentinian rugby hero Hugo Porta.

 

Coe believes the legacy of London 2012 can play a key role in forcing social change.

 

He said: "We wanted to host the Games not just to bring the biggest sports event here for 16 days, but also for years to come.

 

"The real challenge will be making sure that beyond 2012 we're still thinking seriously about sport and all the benefits that will have."