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| Version 6 | Version 7 |
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| 2012 Olympics budget 'on track' | 2012 Olympics budget 'on track' |
| (about 2 hours 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 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. | 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. | 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". | 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. | 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 Send us your commentsLatest budget in detail | 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 Send us your commentsLatest 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." | "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." | "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 | 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 Contribution 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 Contribution to DLR upgrade 86 Thorntons Field relocation 47 Contribution to North London line upgrade 110 Other capital projects 178 Other operating expenditure 357 Sub-total 897 OTHER PARKWIDE PROJECTS Logistics for site construction 337 Section 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 Programme delivery 647 Corporation 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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