Organisers of the 2012 London Olympics have been criticised by MPs for being “willing to spend money like water”.

A report produced by the Culture, Media and Sport select committee has attacked the huge contingency fund set aside for the games and targeted areas where it feels too much money is being spent.

The Aquatics Centre in particular has come in for heavy criticism from the MPs after the cost tripled from an £75 million estimated when London bid for the Games, to the final £242 million announced earlier this month.

The report states: “It appears to be over-designed... and an expensive way of providing the facilities for water sports needed during and after the Games.

“The history of the Aquatics Centre shows a risible approach to cost control and that the Games organisers seem to be willing to spend money like water.”

The committee say the Games should on no account exceed the £9.325 billion budget and that any unspent money should be returned to the National Lottery.

It says although it was not surprising that the original London 2012 budget of £3.4 billion was underestimated, the leap to £9.325 billion has damaged public confidence in the management of the Games.

The report also claims no clear strategy has been published on how sports participation will be increased by London 2012, one of its proposed aims, and MPs and the Government are also at odds over the size of the contingency fund set aside.

While the Government puts this at £2.747 billion, the committee says the true figure is £3.72 billion, which includes £973 million in contingencies built into individual project budgets and £238 million for security.

“Given the enormous size of this figure, we recommend that a substantial proportion of the programme contingency should be regarded as untouchable before 2011,” the report states.”

The committee has also expressed concern over whether income from the sale of land and property after the Games will be as high as the Government and the Mayor’s office predict.

The MPs also conclude it may prove “very difficult” to raise £100 million from the private sector for elite sport, as required by the Government.