Cost of 2012 Olympics rises

The expected cost of the 2012 Olympic Games has increased by nearly £1 billion, Culture Secretary Tessa Jowell has admitted.

Speaking to the Commons culture, media and sport committee, Ms Jowell said that it would now cost £3.3 billion to build the Olympic Park and other stadiums, a rise of £900 million since London won the bid to host the Games in July last year.

However, some critics have said that the final bill for hosting the Olympics could reach £8 billion.

Ms Jowell said that the increase was due in part to the price of steel doubling, as well as decision to revise transport costs in order to take account inflation into account in the years to 2012.

Security costs are also believed to have increased since the July 7 bombings.

Recently, it was revealed that £250 million of VAT had not been included in the construction budget due to an oversight, although Ms Jowell said that this was unlikely to add to the overall cost to taxpayers of the games.

Liberal Democrat culture spokesperson Don Foster said: "The government must get a grip on the chaos and confusion surrounding the Olympic costs.

"The Liberal Democrats are clear. No more money should be siphoned off National Lottery good causes. The burden on London taxpayers should not be increased.

"Additional plans for regeneration should be largely funded from the private sector and any further central government funding should be predominantly for necessary additional security measures."

(KMcA)