Sport England has told British Cycling that it will not receive £17.3 million allocated for grassroots funding over the next four years until the organisation can demonstrate it is able to "meet the highest standards of governance."
The money is conditional on British Cycling complying with a Code for Sports Governance that all governing bodies receiving Sport England funding now have to adhere to.
But with the report of the independent review into British Cycling following allegations of bullying and sexism last year still to be officially published, there is added uncertainty over whether it will meet the criteria.
Sport England chair Nick Bitel said the government agency had “concerns” about the way British Cycling is run as a result of findings from the report that were leaked earlier this month, reports BBC Sport.
"The current draft report raises concerns about decision-making within that governing body," he said following a Sport England board meeting today.
British Cycling earlier this month released details of a 34-point action plan agreed with UK Sport to address the issues raised by the independent review.
However, Bitel said: "We decided that more work on their action plan was required."
"We need to ensure that all sports organisations that receive public funding meet the highest standards of governance.
He continued: "We will need to consider the final report of the Cycling Independent Review, and a more developed version of British Cycling's action plan on governance, before our board makes a decision about any additional requirements we might put in place."
The independent review’s final report was originally due to be published last autumn but is now scheduled to be made public next month, having been delayed in part by the sheer amount of evidence gathered, as well as the need to redact sections of the text.
Referring to the grassroots funding, Bitel added: "We anticipate this position being reached within the next month."
The cash was awarded late last year to British Cycling, the biggest beneficiary in Sport England’s latest funding round to various governing bodies as it aims to get more people active.
Coming from the National Lottery and public money, it is separate to the elite funding provided by UK Sport to develop athletes capable of challenging for medals at Olympic and Paralympic level.
Born in Scotland, Simon moved to London aged seven and now lives in the Oxfordshire Cotswolds with his miniature schnauzer, Elodie. He fell in love with cycling one Saturday morning in 1994 while living in Italy when Milan-San Remo went past his front door. A daily cycle commuter in London back before riding to work started to boom, he's been news editor at road.cc since 2009. Handily for work, he speaks French and Italian. He doesn't get to ride his Colnago as often as he'd like, and freely admits he's much more adept at cooking than fettling with bikes.