Olympics 'funding drain' warning

Olympic 'risk' to arts funding

Monday, 25, Jun 2007 12:00

Lottery funding diverted to pay for the 2012 Olympics should be repaid after the games, MPs have said.

The Commons culture, media and sport committee recommends the money be treated as a loan, warning other cultural projects risk losing out due to the escalating cost of the 2012 London Olympics.

Hosting the 2012 Olympics gives the UK an unprecedented opportunity to display its cultural heritage but funding the games must not be allowed to damage the UK's ability to maintain other sectors, MPs said.

The committee warned the two sectors are in direct competition for lottery funding, with grants for museums and art galleries being diverted into the Olympics.

The 2012 games will cost at least £10 billion and the heritage sector is expected to lose £160 million as a result.

In its report Caring for our Collections the committee expressed "deep concern" at the impact of this funding diversion.

It advised: "Every possible effort must be made to ensure that the demands of the Games do not make it impossible for the sector to seize this unique showcasing opportunity."

The committee called on the Department for Culture, Media and Sport to confirm any diverted funds will be treated as a loan and the heritage sector reimbursed.

England is a "cultural treasure house," the committee concluded, and the various collections are a legacy and source of national pride. But, they need to be developed as well as protected, it warned.

The report warned that without continued investment, particularly from the Heritage Lottery Fund, the benefits of recent investment will be lost and some institutions could revert to a poorer state than they were in before.