Ministers quash reports of £9bn London Olympic bill
Sunday, 25 February 2007
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The Government moved to scotch reports that the final bill for the 2012 Olympics could reach £9bn - nearly four times the figure set out in the city's original Games bid. Ministers described the figure as "just the latest" of many figures to surface in the media over recent months.
Despite this, John Whittingdale, the Culture, Media and Sport Select Committee chairman, yesterday stressed that the British taxpayer could not be expected to write a "blank cheque" for the event, and called on ministers to clarify costs "very soon".
The price of construction alone is now being estimated at £3.3bn, according to a BBC investigation, which highlighted the spiralling bill. Other hidden costs include a £1bn VAT bill, regeneration costs of £1.8bn and security expenses which are now said to have risen to about £900m. Costs have mounted since London won the right to host the Games on 6 July 2005. On top of soaring construction bills, an extra £2bn has been allocated as a contingency fund and there have been suggestions that the Treasury and DCMS have clashed over the budget, originally set at an initial figure of £2.35bn during the application process.
A spokesman for the DCMS denied suggestions that there were tensions between the two Whitehall departments over the potential scale of the bill for the games, which are scheduled to run from 27 July to 12 August 2012.
"Discussions are going on across government to resolve outstanding issues and we will make an announcement about long-term budget figures when these have concluded," he said.
However, Mr Whittingdale, the Tory MP for Maldon and East Chelmsford, said a statement on the financial situation was needed immediately. "I think the total [cost] is going to be a lot bigger than was initially suggested," he said. "What is important, I think, is that the Government comes out and gives a clear statement so that we can actually have some facts rather than continue to have figures bandied about which seem to rise by the week.
"One of the problems is that we haven't had transparency. We haven't had a clear statement, and therefore speculation is bound to continue. That's going to start to undermine confidence as people think that the cost burden is just going to up and up."
The news came with 2012 days to go before the 2012 London Paralympic Games, which was described by organising committee chairman Lord Coe as "one of the world's most exciting and inspiring sporting events and experiences".
He said: "We want to set new standards on and off the track, and be a catalyst for continued change in public attitudes towards disability."
