Brexit & EconomyPoliticsHuge Olympics overspend likely to hit taxpayers

Huge Olympics overspend likely to hit taxpayers

Treasury's insistence on 60% contingency fund for overspends was 'an almost open cheque' for contractors to go over budget, report slams, and it may lead to taxpayers picking up the bill

Rocketing costs for the
2012 Olympics may have
to be met by all British taxpayers, a cross-party Commons panel has warned. In
an uncompromising report, the body panned
Gordon
Brown
for inflating the huge price tag associated with the Games after the
Treasury insisted on a 60% contingency fund.

Original estimates put the cost of the Games at £2.375bn but there has
been increased speculation that the event will cost more than three times as
much. In recent months an unexpected VAT bill of £250m has also hindered
efforts to      combat rising costs. 

The report said: ‘Just 18 months after winning the bid, it is clear that many
of the cost figures are serously outdated.’ Funding for the core Olympic costs
is currently split between the Lottery which contributes £1.5bn, £250m from the
London
Development Agency
and £625m from Council Taxpayers in London. 

Concerns have been raised that that the tax net may have to be widened onto a
national scale in order to meet costs. The committee warned: ‘If the financial
pain of paying more for the Olympics is to be widely shared, it will require a
contribution from the Treasury.’

A revised budget is due to be announced in February, but officials conceded
that this would not take final security costs into account.

Further reading:

Tories demand Jowell statement on Olympics
VAT bill
 

Cost control bill sees Olympic budget
soar

Related Articles

Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

Budget Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

1m Emma Smith, Managing Editor
Spring Statement live feed

Budget Spring Statement live feed

1m Emma Smith, Managing Editor
Spring Statement 2018: 5 things to look out for

Brexit & Economy Spring Statement 2018: 5 things to look out for

1m Alia Shoaib, Reporter
Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

Politics Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

3m Emma Smith, Managing Editor
David Davis, Secretary of State for Exiting the European Union

Brexit & Economy David Davis, Secretary of State for Exiting the European Union

3m Alia Shoaib, Reporter
Philip Hammond, Chancellor of the Exchequer

Brexit & Economy Philip Hammond, Chancellor of the Exchequer

3m Alia Shoaib, Reporter
Elizabeth Truss, Chief Secretary to the Treasury

Brexit & Economy Elizabeth Truss, Chief Secretary to the Treasury

3m Alia Shoaib, Reporter
Mel Stride, Financial Secretary to the Treasury

Brexit Mel Stride, Financial Secretary to the Treasury

3m Lucy Skoulding, Reporter