2012 Still Dogged By Cost Rumours

Concerns over inflating costs continue to hound London 2012 organisers after
media reports claimed that the new revised budget to be released next month had
doubled from original estimations to £5.1bn.

The reports suggested that, according to a leaked document from the Olympic
Delivery Authority, the financing was way above the initial suggestions of the
revised budget.

The increase will mean that increased taxes and additional reliance on
National Lottery funding would be a formality despite MPs issuing a report last
week that frowned on using such funds to bail out the Games.

The ODA figures also do not include VAT costs which could add another £1bn to
the budget unless Gordon Brown decides to waive the tax bill.

Culture Secretary Tessa Jowell denied the reports that the 2012 budget was
set to double, describing the latest reports as ‘nonsense’.

Jowell said the budget for the 2012 Games need not be finalized for three
more years but admitted the government did not know precisely how the London
Games would be funded, adding that the budget for the Sydney Games in 2000 was
only settled two years before it took place.