Link to the story here (it’s paywalled). The Times quotes a senior politician within the ruling coalition as saying that there is agreement within government that the games “are doomed” and that Tokyo now hopes to get the 2032 games instead.
Apparently the global winter wave of Covid was the final straw, forcing a state of emergency in Japan’s major cities including Tokyo itself.
This will be the first time an Olympics has ever been cancelled in peacetime.