Olympic Lottery Campaign
NCVO believes that the 2012 Olympic and Paralympic Games are an exciting opportunity for the capital and the rest of the country, providing thousands of volunteering opportunities and the potential for urban and environmental regeneration of local communities.
However, we remain concerned about the impact of the Olympics on lottery proceeds for good causes. Voluntary and community organisations doing vital work throughout the UK should not lose out to the rising costs of the infrastructure for the Games - an event that should unite us all.
Latest News
25 May: The Government has published its response to the petition on the Lottery raid to pay for the Olympics. Whilst NCVO welcomes the commitment that the voluntary and community sector's funding from the Big Lottery Fund will be protected - we remain concerned about the impact of the further diversion upon arts, sports and heritage charities and community groups.
24 May: Lib Dem MP, Paul Holmes, has secured a debate in the House of Commons on 6th of June on "Impact on arts and heritage of the diversion of lottery funding to the 2012 London Olympic Games". He also pressed our campaign in the Commons earlier this week.
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Background
The Lottery is already committing £1.5 billion towards the infrastructure costs of the games. £750 million will come from the Olympic lottery games and a further £750 million will be diverted from existing good causes between 2006 and 2012.
In late 2006, there was significant coverage about the escalating costs of the Olympics. It began with an announcement from the Treasury that EU rules meant that £250m in VAT was now due on Olympic building costs previously thought to be exempt from VAT.
In November 2006, in a statement to the Culture, Media and Sport Select Committee, the Culture Secretary stated that the cost of the Olympic Park had risen from £2.4 billion to £3.3 billion adding an extra £900 million to the costs of the Park.
In February 2007, The Sunday Times reported that the cost of the Olympics will be more than double the amount quoted in the original bid document. The article claims that the Government will have to raid at least £1.7 billion from Lottery good causes and public funds to meet the increased costs. Meanwhile, the Observer has reported that the Chancellor is planning a £1.9 billion raid.
The Culture Secretary failed to rule out the possibility that more money will be raided from the National Lottery to meet the rising costs of the Olympics. Furthermore the 2004 Horserace Betting and Olympic Lottery Act gives the Secretary of State powers to plug any shortfall in funding "through seeking additional national lottery funding". The Culture Secretary is therefore able to transfer money from the National Lottery Distribution Fund to the Olympic Lottery Distribution Fund.
In March 2007, the Culture Secretary announced that a further £675m would be diverted from National Lottery good cause funds to pay for the increasing costs.
NCVO welcomed a commitment from the Government that voluntary and community sector funds from the Big Lottery Fund would be protected. This includes both existing programmes and future resources for the sector.
However, NCVO remained concerned that arts, sports and heritage charities and community groups will lose out as a result of the diversion.
Our concerns
NCVO is concerned that arts, sports and heritage charities, voluntary organisations and community groups are being unfairly penalised due to the increased costs of the Games.
We welcomed the news that the Big Lottery Fund’s resources to the voluntary and community sector will be protected. However we are very concerned that similar protection has not been provided for voluntary and community organisations that apply for funds from Arts Council England, Sport England and the Heritage Lottery Fund.
A recent parliamentary question demonstrates the importance of Lottery funds from these three distributors to charities and community groups.
The Heritage Lottery Fund estimates that in 2005-06, 55% of its lottery awards were made to the third sector. Arts Council England estimates that it awarded approximately 60% of its budget to the voluntary and community sector. Sport England estimates that around 30% of its funding has gone to voluntary and community organisations over the lifetime of the lottery.
This means that heritage charities stand to lose out on almost £50 million, arts charities over £37 million and sports charities over £16m, a total of over £100 million.
Sports, arts and heritage organisations, as well as the wider voluntary and community sector, want the 2012 Olympic and Paralympic Games to be an unqualified success. The 2012 Olympics could deliver a very important legacy at a local and community level and our members have a vital role to play to secure this. However, we have very serious concerns that this diversion of lottery funds will jeopardise this legacy.
What we want
The diversion of Lottery funds is subject to a vote in both Houses of Parliament.
We are therefore calling for the House of Commons vote to take place on the floor of the House, rather than in Committee.
It is vital that all parliamentarians have the opportunity to debate this raid on Lottery funds.
We are also seeking an urgent meeting with the Secretary of State for Culture, Media and Sport.
We are calling on the Government to offer similar protection to arts, sports and heritage charities and community groups that is provided to the rest of the voluntary and community sector.
Recent media reports have suggested that an announcement on the full cost of the Games has been delayed for two months and that discussions are continuing about how the overspend should be met.
We therefore have a good opportunity to raise this issue with Ministers at the Department for Culture, Media and Sport, the Treasury and the Office of the Third Sector.
Register your support for the campaign by e-mailing us.
Sign the petition.
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Further Information
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