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| 2012 Olympics budget 'on track' | 2012 Olympics budget 'on track' |
| (10 minutes 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 | 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 November, the House of Commons public accounts committee attacked ministers over planning for the event, saying foreseeable costs had been "grossly underestimated". | In November, the House of 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. |
| 'Deprived' | 'Deprived' |
| 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". |
| 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 | 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 |
| These figures "will provide a robust baseline for future reporting", she said. | These figures "will 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. | |
| "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. |
| "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". | |
| 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." |