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| Olympics budget rises to £9.3bn | Olympics budget rises to £9.3bn |
| (about 1 hour 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. |
| The revised budget is nearly four times the £2.4bn estimate when London's bid succeeded less than two years ago. | The revised budget is nearly four times the £2.4bn estimate when London's bid succeeded less than two years ago. |
| Construction is now budgeted at £5.3bn, there is a £2.7bn "contingency fund", plus higher tax and security costs. | |
| The Tories attacked her decision to "raid" £675m from lottery funds - which means £1 in every £5 of good cause money now going to the Olympics. | |
| The £5.3bn budget for the Olympic Delivery Authority was made up of £3.1bn to build the Olympic Park and venues and £1.7bn for regeneration and infrastructure. | |
| BUDGET BREAKDOWN £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 ODA would also be given a £500m contingency allowance - but the rest of the overall £2.7bn contingency fund would be "locked away", so the government could not be "held to ransom", she said. | |
| 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 £6bn, she said - the rest will be met from London's council tax payers and the National Lottery. | The government's contribution has risen to £6bn, she said - the rest will be met from London's council tax payers and the National Lottery. |
| Ms Jowell responded to criticism of the decision to take more money from Lottery good causes by saying the Lottery would benefit from profit sharing based on rises in land values in the Olympic park area. | |
| 'Huge financial gain' | |
| "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." |
| The budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago Hugh RobertsonConservative spokesman No tax rise, says mayor Send us your comments | |
| 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 for the Conservatives, the 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 for the Conservatives, the 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. |
| HOW 2012 ESTIMATES HAVE CHANGED 2003: Consultants Arup put total cost of building and staging the Games at £1.796bn2003: Tessa Jowell launches bid in May telling MPs it will cost £2.375bn - including a 50% contingency2005: Bid succeeds in July with "prudent" estimate of preparing for games of £2.4bn 2006: Tessa Jowell says Olympic Park costs up to £3.3bn2007: Olympic Park budget now at £5.3bn - including regeneration and infrastructure2007: Total budget, including contingency, security and tax, reaches £9.35bn | |
| "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." |
| Tory MP Mark Field suggested that the original budget was "a lot more slack than it might otherwise have been", because Ms Jowell had not expected London to win the bid. | |
| She accused the Conservatives of trying to undermine the Olympics and said they would have preferred it if London's bid had failed. | |
| For the Lib Dems, Don Foster MP said: "Properly managed, the 2012 Games will bring huge and lasting benefits to all parts of the country. | For the Lib Dems, Don Foster MP said: "Properly managed, the 2012 Games will bring huge and lasting benefits to all parts of the country. |
| "But sadly today's statement and the chaos that has surrounded the last 12 months and more, calls into question the government's ability to provide that proper management." | "But sadly today's statement and the chaos that has surrounded the last 12 months and more, calls into question the government's ability to provide that proper management." |
| He said the plans to take more money from the National Lottery equated to a cut of £1m to every constituency in the country. | He said the plans to take more money from the National Lottery equated to a cut of £1m to every constituency in the country. |
| The budget outlined by Ms Jowell on Thursday largely covers construction costs of the Olympic Park and venues. The cost of staging the event itself - currently estimated at £2bn - will be met through selling television rights, corporate sponsorship and ticket sales. |