Up to £15m could be snatched from Bradford's village halls and community groups to fund the London Olympics after a fresh raid on Lottery funds, it was claimed yesterday.

Local authority leaders reacted with fury after an extra £675m was diverted from the National Lottery's good causes pot to pay for the 2012 Games.

The move means a total of £2.17bn of Lottery cash will now be spent on the Olympics - equivalent to £35 for every person in the country.

An alliance of local councils from across the North calculated that £77m would be lost from West Yorkshire, meaning if evenly split between the five local authorities, Bradford faces a potential loss of £15.4m.

And it warned that the victims would be grassroots voluntary groups and projects, for whom the Lottery had offered a "lifeline".

Among the projects typically funded by good causes grants are sports facilities and village halls and schemes helping disabled children and the homeless.

In the Commons, it was claimed the raid was the equivalent of a sports pitch in every single parliamentary constituency.

Meanwhile, the Government was forced to deny it faced a further £1bn blackhole in the 2012 finances, after drastically underestimating the likely profits from land sales.

But, despite the escalating row, the Tories and Liberal Democrats stepped back from forcing a Commons vote on the £675m diversion.

Despite condemning the "financial incompetence", they backed the package in return for a strict pledge that there would be no further raids on Lottery cash.

Last night, The Alliance - which represents 70 local councils in traditional industrial areas - said: "The Lottery has thrown a lifeline to small groups in some of the UK's most vulnerable communities. These losses will directly impact on good causes throughout the UK, with some of the areas of greatest need suffering the worst blows.

"There is a danger that the 2012 London Games could become deeply unpopular, robbing good causes to pay for further investment in the country's most prosperous city."

The Alliance demanded the Government reverse a previous pledge that London will enjoy the first claim on profits from the sales of Olympic land after 2012. But it is that funding stream at the centre of the alleged £1bn blackhole, after a newspaper reported that sales were now predicted to raise £800m - not the original £1.8bn.

A shortfall would jeopardise the intention to repay to the National Lottery the £675m, which is technically a loan.

Coun Kris Hopkins, leader of Bradford Council, said: "I believe the 2012 Olympics will be good for the country as a whole, including Bradford district.

"However, as I have said many times in the past, it is scandalous that the Government has continued to raid Lottery funds to fund the Games.

"One of the selling points of the London bid was that the Olympics would serve as a catalyst for the regeneration of one of the city's poorest areas, and that is fair enough.

"But any funds raised from the post-Games sale of Olympic facilities should clearly be used to benefit regions other than London which cannot expect to benefit twice to the detriment of areas in greater need."