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| Olympics budget rises to £9.3bn | Olympics budget rises to £9.3bn |
| (10 minutes later) | |
| The budget for the 2012 London Olympics has risen to £9.35bn, Culture Secretary Tessa Jowell has told MPs. | The budget for the 2012 London Olympics has risen to £9.35bn, Culture Secretary Tessa Jowell has told MPs. |
| Construction costs were now estimated at £5.3bn, she said - which compares with an initial £2.4bn budget. There is also now a £2.7bn "contingency fund". | Construction costs were now estimated at £5.3bn, she said - which compares with an initial £2.4bn budget. There is also now a £2.7bn "contingency fund". |
| The rest of the budget increase comes from extra security and tax costs. To help pay for the games £675m more will be taken from the National Lottery. | The rest of the budget increase comes from extra security and tax costs. To help pay for the games £675m more will be taken from the National Lottery. |
| The Tories said she had lost control of costs which had trebled in a year. | The Tories said she had lost control of costs which had trebled in a year. |
| THE NEW BUDGET £3.1bn: Site construction£1.7bn: Regeneration and infrastructure£2.7bn: Programme contingency £840m: ODA tax bill£600m: Extra security£390m: Non-ODA provision | THE NEW BUDGET £3.1bn: Site construction£1.7bn: Regeneration and infrastructure£2.7bn: Programme contingency £840m: ODA tax bill£600m: Extra security£390m: Non-ODA provision |
| The £5.3bn budget for the Olympic Delivery Authority was made up of £3.1bn to build the Olympic Park and venues, £1.7bn for regeneration and infrastructure and a £500m contingency allowance. | |
| The figure did not include tax, but the anticipated £840m tax bill would be met from central government funds, she said. | The figure did not include tax, but the anticipated £840m tax bill would be met from central government funds, she said. |
| The overall programme contingency would be £2.7bn, she said, which would only be drawn upon in "very tight conditions". | The overall programme contingency would be £2.7bn, she said, which would only be drawn upon in "very tight conditions". |
| 'Huge financial gain' | |
| Another £600m had been allocated for "wider security" outside the site, and £390m for other costs including the Paralympics and community sports coaches. | Another £600m had been allocated for "wider security" outside the site, and £390m for other costs including the Paralympics and community sports coaches. |
| The government's contribution has risen to £6m, she said - the rest will be met from London's council tax payers and the National Lottery. | The government's contribution has risen to £6m, she said - the rest will be met from London's council tax payers and the National Lottery. |
| The budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago Hugh RobertsonConservative spokesman | |
| Ms Jowell was accused of raiding the lottery good causes to pay for the overspend, but she said the Lottery would benefit from profit sharing based on rises in land values in the Olympic park area. | Ms Jowell was accused of raiding the lottery good causes to pay for the overspend, but she said the Lottery would benefit from profit sharing based on rises in land values in the Olympic park area. |
| "London 2012 will bring huge financial gain to the whole country ... and it is only fair that the Lottery good causes should share in any such windfall," she told MPs. | "London 2012 will bring huge financial gain to the whole country ... and it is only fair that the Lottery good causes should share in any such windfall," she told MPs. |
| "I am determined to ensure that this temporary diversion from the existing good causes to the Olympic good cause is done with the least possible disruption." | "I am determined to ensure that this temporary diversion from the existing good causes to the Olympic good cause is done with the least possible disruption." |
| 'Trebled' | |
| London Mayor Ken Livingstone has also pledged to contribute an extra £300m, she said - but the money would not be funded from London's council tax, nor higher transport fares. | London Mayor Ken Livingstone has also pledged to contribute an extra £300m, she said - but the money would not be funded from London's council tax, nor higher transport fares. |
| Winning the Olympics had brought an extra £7bn of private sector investment to one of the most deprived areas in Europe, Ms Jowell said. | Winning the Olympics had brought an extra £7bn of private sector investment to one of the most deprived areas in Europe, Ms Jowell said. |
| "The announcement today means it's full steam ahead for 2012," she added. | "The announcement today means it's full steam ahead for 2012," she added. |
| But Shadow Olympics minister Hugh Robertson said: "If you add together all the separate parts, the budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago. | But Shadow Olympics minister Hugh Robertson said: "If you add together all the separate parts, the budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago. |
| "In raiding the Lottery for a further £675m to make up the shortfall the government will penalise precisely the clubs and small organisations, up and down the country, that were supposed to benefit from the Olympics." | "In raiding the Lottery for a further £675m to make up the shortfall the government will penalise precisely the clubs and small organisations, up and down the country, that were supposed to benefit from the Olympics." |