The tea clipper Cutty Sark will be restored in time for the 2012 Olympics at a cost of £46 million. The Department of Culture Media and Sport has ended fears of a funding shortfall with a grant of £3 million.

Half the cash has already come from the Heritage Lottery Fund, the rest from private donors, and local councils.

The clipper was badly damaged by fire three years ago after a dust extractor on board caught fire after being left plugged in overnight