The report finds that while the costs of tax and security were excluded from the estimates since they were uncertain, £738 million of funding from the private sector was included despite its not being supported by robust  analysis.

SOUTH NORFOLK MP Richard Bacon has said that the original budget for the 2012 Olympic and Paralympic Games now looks like ‘smoke and mirrors’, as a new report finds that the budget for the Games has risen by over £5 billion since London’s successful bid. Mr Bacon said today: “The original budget for the 2012 Olympics now looks like smoke and mirrors.  Funding from the private sector was left in the budget, despite the fact that DCMS didn’t know where that money was coming from”.

“Meanwhile, entirely foreseeable costs such as tax and security were left out.  Taxpayers will now be taking g DCMS’ pledge not to exceed the revised £9.3 billion budget with a pinch of salt”. 

“If the public are to have confidence in the government’s ability to deliver the 2012 Olympic Games, ministers must be open and honest about the Olympic budget and reassure taxpayers that the Games are fully costed”. 

Mr. Bacon was speaking as the Commons public accounts committee published its report on the budget for the London 2012 Olympic and Paralympic Games.  At the time of London’s bid to host the 2012 Olympic and Paralympic Games, the budget for the Games stood at just over £4 billion, comprising £3.4 billion of taxpayers’ money with a further £738 million from the private sector.  However, in March 2007, the Department for Culture, Media and Sport (DCMS) announced a revised budget of £9.3 billion, an increase of over £5 billion. 

The report finds that while the costs of tax and security were excluded from the estimates since they were uncertain, £738 million of funding from the private sector was included despite its not being supported by robust analysis.

22 April 2008
 

See also:
PAC REPORT: The budget for the 2012 Olympic Games
PARLIAMENT: Over-optimism on funding could cost medals
PARLIAMENT: Olympics budget worthy of ‘Del Boy’ says MP
PARLIAMENT: Olympic Civil Servants should stay put
PARLIAMENT: Chancellor 'dragging his heels' over Olympics - MP