Olympics bill grows as organisers spend more on security
Wednesday, 16 February 2011 12:01 AM
By Hannah Brenton
The costs of hosting the Olympic Games look likely to escalate in the run up to 2012, according to a report from the National Audit Office (NAO).
Total costs to the taxpayer remains "uncertain" but security costs have surged from £600 million to £757 million.
The Treasury will likely foot a higher bill as funding for risks runs out. The NAO warned today that the remaining £974 million contingency funding - originally £2,747 million - may not be enough to cover unforeseen problems that arise.
It advises the Government Olympic Executive to develop a plan to find extra funding if the contingency fund is exhausted.
The London Organising Committee of the Olympic and Paralympic Games (LOCOG) will also need more money from the public purse, the NAO cautioned, if it does not break even.
Amyas Morse, head of the NAO, insisted preparations for the games were going according to plan:
"All construction and infrastructure projects are forecast to be completed on time, albeit in two cases with little room to spare before the deadline for handover to LOCOG, the games organiser, and operational planning has improved," he said.
But he said that the costs could soar in the run up to the international sporting event next year.
"The final cost of the games to the taxpayer is inherently uncertain and as the games near there will be less flexibility to make savings in response to any unforeseen financial pressures," he continued.
The government has provided £9.3 billion to fund the international sporting event.
Most of the Olympics projects are going according to plan. Five of the 24 main projects have been completed and the remaining projects will be delivered on time according to current projections.
Yesterday, the schedule of events was announced. Bidding for tickets will begin next month.
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