Olympics budget tops £9 billion

The budget for the 2012 London Olympics has risen to £9.3 billion, Culture Secretary Tessa Jowell has announced.

The revised budget is nearly four times the estimated £2.4 billion budget announced when London's bid became successful two years ago.

The cost of building the venues has now risen to £5.3 billion, while there is also a £2.7 billion 'contingency fund', an £840 tax bill and £600 million for heightened security.

The government's contribution has now increased to £6 billion, while the lottery will provide an extra £675 million on top of the £2.1 billion already committed to the fund.

However, Mayor of London Ken Livingstone said that taxpayers in London would not have to pay any extra towards financing the Games.

Mrs Jowell said that the Olympics would bring "huge financial gain" to Britain, in spite of the rising costs.

However, the Conservatives criticised the government's decision to take more funds from the lottery. Shadow Olympics Minister Hugh Robertson said that the decision to use more lottery funds would "penalise precisely the clubs and small organisations, up and down the country, that were supposed to benefit from the Olympics".

Liberal Democrat culture spokesperson Don Foster said: "The chaos over the budget during the past 12 months and more, has called into question the government's ability to provide proper management of these Games.

"Far from working together, the last year has been characterised by chaos, confusion and infighting of epic proportions.

"Today's statement must put an end to the type of government squabbling that is undermining confidence in the Games.

"The 2012 Games have strong public support and the potential to deliver a lasting legacy to the economy, sport and communities across the country.

"If the Games are to be a success in financial, as well as sporting and cultural terms, then the government cannot write any more blank cheques."

(KMcA/SP)