Olympics budget update imminent

Tessa Jowell expected to give assurances next week that the Olympics budget has not surged to an even higher level

Written by David Jetuah

Accountancy Age, 03 Dec 2007

Up-to-date forecasts for the costs of the London 2012 Olympics are set to be made public next week.

The move is being made by the government to show that the £9.3bn budget has not spiralled out of control, following criticism from opposition ministers.

This latest cost projection, set to be revealed by Olympics Minister Tessa Jowell next Monday are expected to show that the overall bill has not risen since the first forecast announced in March.

The Olympic Delivery Authority's core costs are thought to have remained at the £6.1bn level announced in March. This consists of approximately £3bn for Olympic related buildings and infrastructure, £1.7bn for general regeneration, £500m of contingency provision and £900m on VAT and tax. The total £9.3bn budget includes a £2.7bn contingency fund and £600m for security.

A comprehensive 600-page analysis on the Olympics budget is set to be published early next year.