One of the prime reasons is that Service personnel don't get overtime pay ..... but the plods do. Consequently, it is
much cheaper to 'draft' in Service folk and piss them about. Shortly after the Olympics I'm sure one of two things will happen - some of those Service personnel will be off to a far-flung lands to scratch for scorpions in the sand, and the rest will be made redundant.
As for the sudden doubling of the Olympic security budget? Well, most of that will be given to the consultants who suggested using the military to boost security personnel numbers, of course.