26 January 2007
Treasury ministers will continue to monitor closely the cost of the Olympic Games, but have not committed themselves to covering unaccounted rises, officials confirmed this week.
Pressure is mounting on Chancellor Gordon Brown to cover the £900m increase in the project's cost since the government's first estimate, amid concerns that responsibility for any further rises will fall disproportionately on London taxpayers and National Lottery coffers.
A Treasury spokesman said: 'We're working closely with Department for Culture, Media and Sport officials to review, continually, the cost of the project, and [ministers are] still considering the options.'
The Commons' culture, media and sport select committee published its update on the cost and legacy of the London 2012 Olympics project on January 24. The MPs urged the Treasury to cover the 'significant' £900m rise to date by spreading the cost across UK taxpayers.
'The London council tax precept should also not be seen as a cash fountain: the government rightly stresses the benefits should be felt across the UK, and Londoners should not be paying disproportionately,' the MPs' report states.
'If the financial pain of paying more for the Olympics is to be widely shared, it will require a contribution from the Treasury.'
MPs also criticised the contingency figure that the Treasury insists should be set aside to cover total cost rises – 66% (£2bn). London mayor Ken Livingstone suggested that should be capped at 20% to control costs more effectively.
However, the committee is broadly supportive of the Olympics project, vaunted by Prime Minister Tony Blair as he was shown round the site for the main stadium by bid leader Lord Coe on January 23.
PFjan2007
