Govt rejects claim Olympics will force council tax hike

Tories claim local quango will work as funding "Trojan horse"

Monday, 07, Jan 2008 12:00

The government has rubbished claims by the Conservatives that local taxpayers in the home counties could be left footing the bill for the 2012 London Olympic games.

Yesterday, the Conservatives claimed the liabilities for the London Olympic project had been passed on to a local quango which has the power to raise council tax.

The Tories reported the Lee Valley Regional Park Authority had been handed the land and liabilities for the Olympic project, leaving it facing the bill for any potential budget overrun.

As the authority has the power to raise council tax bills in London as well as nearby Hertfordshire and Essex, the Tories suspected it would be used as a "Trojan horse" to increase local taxpayers' share of the Olympics bill.

However, the Department for Culture, Media and Sport (DCMS) today rejected this claim, insisting contingency plans are already in place to guard against any budget overruns.

Bob Neill, Conservative shadow minister for London, said yesterday that politicians had a "duty" to ensure local taxpayers are not forced to write a blank cheque for the 2012 Olympics.

Mr Neill said: "Given the Labour government's record on the Millennium Dome, and that the Olympics budget has already trebled, we have every right to be sceptical about the government's plans for the Lee Valley authority.

"True to Labour and Ken Livingstone's past form on council tax, this could easily be used to sidestep their pledge not to increase the Greater London Authority tax levy."

The mayor of London has said the extra cost of the Olympics for each London household will not exceed £20 a year.

Concerns have been long-running over the cost of the games, however, with Olympic projects including the Athens and Sydney games being prone to budget overspends.

Eric Pickles, communities shadow secretary, said: "I fear that the Trojan Horse of the Lee Valley authority could be used as cover for yet another stealth rise in council tax by Labour.

"Taxpayers across Essex and Hertfordshire will be alarmed that they could now end up footing an open-ended bill for the aftermath of the Olympics."

But a spokesman for the DCMS confirmed today: "The Lea Valley Regional Parks Authority does not have the legal powers to do what is suggested.

"There is no way in which any 2012-related cost overruns could be the responsibility of the Park Authority, let alone lead to it seeking to burden council tax payers, in London or beyond, with them.

"We have a robust budget for 2012 that will guard against cost overruns."

Last month the government insisted it was confident the final costs of the Olympic games will not rise above estimates, despite a report forecasting a one in five chance of an overspend.