The government's decision regarding a possible bid to host the 2012 Olympics in London, has been postponed in the light of possible conflict in Iraq.

Although the Cabinet was due to discuss the proposed bid on 30 January following a presentation by Culture Secretary, Tessa Jowell, the Games have been moved down the agenda. An announcement is now expected on 13 February.

Opinion on whether the government will choose to back the bid is still very much divided with the expense of hosting the event the main stumbling block - estimates indicate the cost to taxpayers could be around £2.5bn.

London Mayor, Ken Livingstone, however, has pledged to raise almost half of that by charging Londoners additional council tax.

Other suggested methods of raising capital have included an additional Olympics-specific lottery game. However, there is concern this would affect participation in the existing national lottery.

The bid has faced considerable opposition from MPs, as many do not believe the investment benefits the whole country.

The DCMS select committee has taken an indifferent stance to the bid, reporting that while 'highly desirable in principle', it had grave concerns about the cost and would not be prepared to 'write a blank cheque'. DCMS chair, Gerald Kaufman, has been a vocal opponent, describing the bid as 'madness'.

Tessa Jowell herself was recently accused of withholding research showing the public overwhelmingly backs the bid.

The government is reluctant to commit unconditionally to a proposal which could spiral out of control, as did the Millennium Dome and the National Stadium at Wembley.

Wembley itself has again proved to be a sticking point, with the select committee raising particular objection to the venue not having a central role in the bid, which would be focused on the East End.