London Olympics 'to come in £476m under budget'

 
Olympic stadium The Olympic Stadium will host the opening ceremony next month

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The London Olympics is set to come in under its £9.3bn budget with £476m of the contingency funding left, according to new government figures.

Culture Secretary Jeremy Hunt said it was "fantastic news" that the Games would be on time and under budget.

Ministers expect to be able to return the remaining money to the Treasury.

The £9.3bn budget, which included a £2bn contingency, was set in 2007 and was almost four times the estimated cost at the time London bid in 2005.

The budget was revised upwards after taking into account previously overlooked costs such as VAT, increased security costs, and an expanded brief for the Olympic Delivery Authority (ODA) to regenerate the lower Lea Valley area.

Addressing the original bid budget of £2.4bn, Sports Minister Hugh Robertson said there was a "recognition right from the word go that figure would have to change dramatically on the basis of delivering the Games".

London 2012 - One extraordinary year

London 2012 One extraordinary year graphic

Mr Hunt said: "Britain has proved that not only can we put on a great show for the world to watch like we did with the Jubilee but that we can also deliver big construction projects on time and on budget."

Mr Robertson said the latest figure for the Games, which begin next month, was "a great advert for the British construction industry, for sport and for UK Plc".

Following the success of the Queen's Diamond Jubilee and the ongoing Olympic torch relay, additional funding of £19m has been earmarked to bolster crowd control and public information for the games.

The money, which will be allocated from within the £9.3bn budget, will pay for additional stewards and crowd flow measures in central London as well as the "last mile" - what organisers describe as the distance between transport hubs and Games venues.

Mr Robertson said: "We know exactly how many tickets have been sold and roughly how many people should be in London. Absolutely nobody knows how many people are going to turn up.

"London this summer is going to be the place to have a party. It is a great national event. It is very difficult for us to know exactly how many people are going to come across on the train, in the car or on the ferry only for a party."

The government confirmed the work of the ODA, which is responsible for developing and building the venues and infrastructure for the games, is 98% complete.

It will not be fully completed until after the Games when the ODA will convert apartments in the Olympic Village into thousands of new homes.

 

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  • rate this
    0

    Comment number 45.

    Does that mean the Londoners who paid for the olympics through their council tax will get a refund. I doubt it!

  • rate this
    +7

    Comment number 44.

    Lies, damn lies and statistics.
    Tell us anything, and they think we will swallow it.

  • rate this
    0

    Comment number 43.

    I for one am hugely excited about the Olympics. I was born in the East End of London and the regeneration around Stratford has been spectacular and worth the money. We should all get behind the Olympics and enjoy the greatest show on Earth! Imagine the mood lift when (ok, if) Team GB start winning big medals!

  • rate this
    -7

    Comment number 42.

    Original £2.4bn was only ever an estimate for initial bidding...
    Public contribution has made up £6bn of the revised total...
    £7bn of private sector investment directly into East London...
    Over £6bn of the total budget has gone directly back into the UK economy during construction of the venues etc...
    Add tourism revenues to this...

    Good investment? I think so.

  • rate this
    +1

    Comment number 41.

    What utter nonsense

    By my reckoning the olympics are £6+ million over budget and counting

    Why do politicians continue to treat us as a nation of idiots that believe anything they tell us

  • rate this
    +2

    Comment number 40.

    Horse plops,

    They may try rolling it in glitter next.

  • rate this
    +8

    Comment number 39.

    If Mr Hunt believes this has been delivered "on time and on budget" then it displays a woeful lack of understanding as to the basics of Project Management. However, if his level of knowledge is anything like the norm, it also goes a long way to explaining some of the other disasters of recent years...

  • rate this
    +3

    Comment number 38.

    Spin spin spin. No-one believes a word Jeremy Hunt says.

    Particularly when everyone knows the Olympics are OVER budget.

  • rate this
    -1

    Comment number 37.

    @32 i never mentioned any specific government. In my eyes theyre both as bad as each other.

    The simple fact remains though that what i said was truth.

  • rate this
    -2

    Comment number 36.

    #27 "I'm sure the Olympics will be a financial disaster for the country; however, I'm equally sure that the government have a big brush and a bucket of turd paint ready to use."

    Hilarious!!! But what does it actually MEAN?! Haha!!! brilliant!

  • rate this
    +4

    Comment number 35.

    Revised upwards, previously overlooked costs, increased security, expanded brief... the public was sold a lie on cost as regardless of the booming economy they would have had something more to say about this ridiculous expence. This is weak justification to defend £7,000,000,000. Look out, here come Malcolm Tucker!

    but that we can also deliver big construction projects on time and on budget."

  • rate this
    0

    Comment number 34.

    so...if im counting this roughly correct, an event estimated to initially cost us 2.5 Billion odd....now costs 9.3 Billion, and i'm supposed to clap my hands over 500mil of this being left over?

    Lets wait and see how much money is left at the end, LOL I jest, we all know another few bil is going down the the drain before its all over, like in everything Britain does, Waste is our middle name...

  • rate this
    +3

    Comment number 33.

    Olympics=Scam. It's not under budget, it's hugely over budget. It's pushed up house prices in some of the poorest areas of London and will gentrify those areas. The Olympics creates debt (check every single city it's been held in in recent times) for the people of city but helps a few become rich(er). Why has the BBC not reported on the real issues the Olympics causes? Shame on the BBC.

  • rate this
    +3

    Comment number 32.

    @Renegadeimp
    If my memory serves me well it wasn't the present government that set the original budget... so who's spin was that exactly?

  • rate this
    +1

    Comment number 31.

    This is of course the 'revised' budget after the first two went over !

    This is to deliver sport for the public to see except the tickets went mainly to sponsors and those same sponsors have pushed out youngsters from carrying the torch.

    Shame on all associated with this farce.

  • rate this
    -2

    Comment number 30.

    Pleased that it's under budget......

    Now how about reasonable prices for water, snacks and merchandise for those going to the games?

    Just a thought :))

  • rate this
    +1

    Comment number 29.

    if it's money from the contingency part of the budget that is left over doesn't that mean that they have gone over budget

  • rate this
    -1

    Comment number 28.

    900000000000000... how many 0's in £9 Billion? #Peanuts #loadsamoney

  • rate this
    +2

    Comment number 27.

    There are lies, damn lies and government figures. Wasn't the original budget under £3bn? How is blowing £9,000,000,000 on a two-week event good value?

    I'm sure the Olympics will be a financial disaster for the country; however, I'm equally sure that the government have a big brush and a bucket of turd paint ready to use.

  • rate this
    +1

    Comment number 26.

    We are all utd. Are you sure? You certainly sound it.

 

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