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| 2012 Olympics budget 'on track' | 2012 Olympics budget 'on track' |
| (about 1 hour later) | |
| Olympics minister Tessa Jowell has said a "thorough assessment of all potential risks" has backed the £9.325bn budget for the games she outlined in March. | Olympics minister Tessa Jowell has said a "thorough assessment of all potential risks" has backed the £9.325bn budget for the games she outlined in March. |
| In a written statement to MPs Ms Jowell said "months of careful scrutiny have confirmed" the budget - four times the original estimate - would be enough. | In a written statement to MPs Ms Jowell said "months of careful scrutiny have confirmed" the budget - four times the original estimate - would be enough. |
| She said: "The project has high levels of public support and is on track." | She said: "The project has high levels of public support and is on track." |
| The statement came as the BBC learned a report to ministers said there was a 20% chance the budget would rise again. | The statement came as the BBC learned a report to ministers said there was a 20% chance the budget would rise again. |
| Now we look ahead to what will be a dramatic 2008, with the first building work starting on the Olympic Park site Tessa JowellOlympics minister March: Budget hits £9.3bnMPs attack Olympic costs | |
| In the House of Commons, the Conservative chairman of the culture media and sport committee, John Whittingdale, asked whether any of the £2bn contingency fund in the Olympic budget would remain unspent. | |
| Ms Jowell said it would not be clear until after the games - but she had "grounds for optimism" that it would. | |
| In November, the Commons public accounts committee attacked ministers over planning for the event, saying foreseeable costs had been "grossly underestimated". | |
| Ms Jowell, who has faced widespread criticism over the escalating cost of the games, has now set out the most detailed breakdown of expected costs so far. | Ms Jowell, who has faced widespread criticism over the escalating cost of the games, has now set out the most detailed breakdown of expected costs so far. |
| It shows that £500m of the contingency budget has already been allocated to the Olympic Development Agency. | It shows that £500m of the contingency budget has already been allocated to the Olympic Development Agency. |
| Ms Jowell also said a "detailed account of progress across the Olympic programme" would be provided when the first Olympic annual report was produced in the New Year. | Ms Jowell also said a "detailed account of progress across the Olympic programme" would be provided when the first Olympic annual report was produced in the New Year. |
| She said the delivery authority would also issue "a summary of the baseline scope, aligned budget, programme and risks". | She said the delivery authority would also issue "a summary of the baseline scope, aligned budget, programme and risks". |
| 'Obvious omission' | 'Obvious omission' |
| These figures would "provide a robust baseline for future reporting", she said. | |
| Ms Jowell told MPs: "This statement shows... the budget is consistent with the funding package I outlined in March. | Ms Jowell told MPs: "This statement shows... the budget is consistent with the funding package I outlined in March. |
| "Months of careful scrutiny have confirmed that the Olympic Delivery Authority has the money it needs to deliver the venues and infrastructure for a terrific summer of sport, as well as leaving a long-term legacy for one of the most deprived parts of the country. | "Months of careful scrutiny have confirmed that the Olympic Delivery Authority has the money it needs to deliver the venues and infrastructure for a terrific summer of sport, as well as leaving a long-term legacy for one of the most deprived parts of the country. |
| 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 class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=3918&edition=1">Send us your comments class="" href="#table">Latest budget in detail | |
| "Now we look ahead to what will be a dramatic 2008, with the first building work starting on the Olympic Park site, the Beijing Games and the start of the four-year countdown to London 2012." | |
| For the Conservatives, shadow Olympics minister Hugh Robertson said the statement provided a "welcome initial baseline but falls far short of the full and open budget we had been seeking". | For the Conservatives, shadow Olympics minister Hugh Robertson said the statement provided a "welcome initial baseline but falls far short of the full and open budget we had been seeking". |
| He added: "The obvious omission is any mention of the mass participation sports legacy which was the key commitment in the London 2012 bid but, as yet, remains uncosted and unfulfilled. | He added: "The obvious omission is any mention of the mass participation sports legacy which was the key commitment in the London 2012 bid but, as yet, remains uncosted and unfulfilled. |
| "Monthly cash flows and a breakdown of the contingency are also needed if we are to ensure the budget doesn't increase further." | |
| Liberal Democrat Olympics spokesman Tom Brake said it was a "relief" the budget had not breached the benchmark of £9.3bn. | Liberal Democrat Olympics spokesman Tom Brake said it was a "relief" the budget had not breached the benchmark of £9.3bn. |
| "This has to mark the end of handouts from lottery good causes being used to pay for cost overruns. | "This has to mark the end of handouts from lottery good causes being used to pay for cost overruns. |
| "From now on, both the Olympic Delivery Authority and their contractors will have to cut their cloth to keep within this budget." | "From now on, both the Olympic Delivery Authority and their contractors will have to cut their cloth to keep within this budget." |
Britain's Olympic budgetOlympic Delivery Authority - detailed breakdownProject Cost (£m) SITE PREPARATION AND INFRASTRUCTURE Powerlines 282 Utilities 255 Enabling works 364 Structures, bridges, highways 830 Cont to Prescott Lock upgrade 5 Other infrastructure 206 Sub-total 1,942 VENUES Stadium 496 Other Olympic Park venues 574 Non-Olympic Park venues 101 Sub-total 1,171 TRANSPORT Stratford regional station 119 Cont to DLR upgrade 86 Thorntons Field relocation 47 Cont to N London line upgrade 110 Other cap projects 178 Other operating expenditure 357 Sub-total 897 OTHER PARKWIDE PROJECTS Logistics for site construction 337 Sec 106 and master planning 127 Insurance 50 Security for park construction 354 Sub-total 868 OLYMPIC VILLAGE, PROGRAMME DELIVERY, TAXATION IBC/MPC, Olympic Village 492 Prog delivery 647 Corp Tax and net interest 73 Sub-total 1,212 Total 6,090 Remaining contingency 2,009 Max funding available 8,099 Source: DCMS | Britain's Olympic budgetOlympic Delivery Authority - detailed breakdownProject Cost (£m) SITE PREPARATION AND INFRASTRUCTURE Powerlines 282 Utilities 255 Enabling works 364 Structures, bridges, highways 830 Cont to Prescott Lock upgrade 5 Other infrastructure 206 Sub-total 1,942 VENUES Stadium 496 Other Olympic Park venues 574 Non-Olympic Park venues 101 Sub-total 1,171 TRANSPORT Stratford regional station 119 Cont to DLR upgrade 86 Thorntons Field relocation 47 Cont to N London line upgrade 110 Other cap projects 178 Other operating expenditure 357 Sub-total 897 OTHER PARKWIDE PROJECTS Logistics for site construction 337 Sec 106 and master planning 127 Insurance 50 Security for park construction 354 Sub-total 868 OLYMPIC VILLAGE, PROGRAMME DELIVERY, TAXATION IBC/MPC, Olympic Village 492 Prog delivery 647 Corp Tax and net interest 73 Sub-total 1,212 Total 6,090 Remaining contingency 2,009 Max funding available 8,099 Source: DCMS |
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