Olympic bid stalled because of Iraq crisis

The Government faced anger last night after announcing yet another delay to its decision on whether to approve a bid to host the 2012 Olympics in London.

Ministers have put the issue on ice for at least another fortnight because of the deepening crisis over Iraq.

The British Olympic Association said it was "bitterly disappointed" by the latest delay and warned that the bid could be harmed.

But government sources said they would not be bounced into a decision which, in theory, does not need to be taken for six months. A spokesman said: "Because of pressure of other business, we just haven't got round to doing the necessary thinking through on this, so it will take a bit longer."

The Cabinet is divided on the issue, with Gordon Brown, the Chancellor, continuing to express worries over the cost of staging the Games.

Ministers say the crucial factor remains Tony Blair's attitude. Colleagues believe he is instinctively in favour, but is yet to focus on the detail. A decision was originally scheduled for 30 January. Ministers then agreed to put it off for two weeks to enable further detailed work on the funding to be completed.

But that target has come and gone and, with Parliament in recess next week, the next cabinet meeting where it can be discussed takes place on 20 February.