Sources say the recent rise of steel prices has further delayed the project, which is ring fenced by large wooden fences.

Lyn Garner, chief executive of taxpayer-backed planning authority London Legacy Development Corporation (LLDC), says “the budget in the first place was very challenging, as the cost plan was underestimated. It’s a very complex build with buildings right on top of each other, and integrated design. 

“There has also been a huge impact from Covid, and we had to restart with new safety measures and contractual compensation.”

While the East Bank development was planned as residential, interventions from City Hall meant it was redesigned to prioritise employment and grow consumer spending in the area.

Still, concerns exist around the choice of tenants and how much they are financially contributing to the development.

While UCL are paying the full costs of their new East London campus, neighbouring University of the Arts London and the BBC are contributing just two thirds and one half of their projects respectively. The V&A, which will open two galleries of collections, and Sadler Wells theatre will only pay for the cost of fitting out their newly constructed space. City Hall will foot the rest of the bill.

With few prospective alternative tenants due to the custom built space, long-lease tenant deals struck by the LLDC in East Bank threaten to replicate mistakes already made in the London Stadium.

Initially built for the Olympics, West Ham signed a 99-year lease at the 60,000-seat venue in 2011 and agreed to pay just £2.5m in rent annually. LLDC covers the cost of the ground, with taxpayers forking out around £20m for each of the three years prior to the pandemic.

Transforming the stadium to make it fit for West Ham’s use, meanwhile, cost £323m.

The Hammers’ recent success could be further damaging Khan’s scheme. As highlighted in City Hall reports, the stadium loses less money when fewer games are played.

According to LLDC accounts, increased stewarding costs associated with European matches have exacerbated losses for City Hall, with sources confirming that an increase in games had negatively affected finances.

LLDC members previously told a City Hall committee that in a best case scenario, the Stadium would cost £8-10m a year – and that it was not foreseeable for the stadium to make profit. Filings show the stadium racked up losses of £450m in the five years to March 2020.