Games Doomed to Be White Elephant

Summary


Up, up and away go the costs of the 2012 London Olympics. Predictions are that the budget announced by the Government at the time of the 2005 bid will eventually double or even treble and we taxpayers outside London will have to pick up the extras on the bill.

In 2005, the Government's Olympic Delivery Authority (ODA) told us the Games' "predicted" budget would need public sector funding of pounds2.375 billion and a further pounds1.044 billion from the Government for the Olympic Park infrastructure. This pounds3.419 billion would be financed by pounds1.5 billion from the Lottery, pounds250 million from the London Development Agency and the rest from central government tax revenues.

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Games Doomed to Be White Elephant

But already Culture Minister Tessa Jowell has admitted that the predicted costs for the Olympic Park infrastructure will increase by pounds900 million and the ODA had forgotten to include VAT of pounds250 million in its calculations, thus increasing...

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