Think-tank's call to cut spending on sporting events is sidelined by No 10

A proposal by a Downing Street think-tank for the state to reduce spending on international sports events was disowned by the Government yesterday.

The suggestion by No 10's influential Performance and Innovation Unit (PIU) outraged sports organisations and embarrassed Tony Blair, who within hours of the document being leaked was hosting a reception for England's footballers last night.

Ministers have repeatedly stressed the importance of nurturing stars of the future and encouraging British bids for global events to promote interest in sport.

But in a draft report for the Prime Minister, which was leaked yesterday, the PIU floated the idea of the Government focusing on the "health of the nation", rather than excellence, in sports policies.

The authors questioned whether events such as the Olympic Games, the World Athletics Championship or the football World Cup provided any lasting benefit to the host nation.

They also argued that the example of sporting stars such as David Beckham, who was among last night's guests at Downing Street, might have little influence on encouraging youngsters to take up sport.

The PIU, whose remit is to produce "blue skies" thinking for Downing Street policy-makers, has been working on its report on the future of English sport for several months.

Copies of a draft have been circulated to a small number of sports administrators, who have reacted angrily to some of its suggestions. One source said: "It has not been resolved what is going to happen to the funding of producing world-class sportsmen and women."

Downing Street and the Department for Culture, Media and Sport were at pains to stress the report was in draft form. A ministerial spokesman said: "There is no doubt promoting excellence in sports is something we are very concerned to do."

Downing Street said it would not comment in detail on the leak, but a spokesman added: "The Government, along with the lottery, has put a record investment into sports facilities." He pointed to last week's announcement by Mr Blair that the Government would spend an extra £450m over the next three years to boost sports teaching.

The leaked draft report will fuel suspicions of sports administrators that the Government is seeking ways of saving money. In an interview yesterday, Trevor Brooking, who recently stepped down as chairman of Sport England, said: "The Government has capitalised on sport because media coverage is massive.

"But when it comes to putting extra resources into sport, it does not do that because sport is not a priority."