Olympics at risk from lack of budget

1 Feb 07
The lack of a final agreed budget for the 2012 Olympics presents a major risk to the successful delivery of the games, government auditors warned this week.

02 February 2007

The lack of a final agreed budget for the 2012 Olympics presents a major risk to the successful delivery of the games, government auditors warned this week.

A report from the National Audit Office on February 2 said that the absence of a budget would 'inevitably' have a detrimental impact on the Olympic programme unless it is rectified.

A public funding package of £2.375bn was agreed in 2003 and the government is providing an additional £1.044bn towards the infrastructure costs.

But last November Culture Secretary Tessa Jowell said cost estimates for the Olympic park had increased by £900m since the bid and further areas of uncertainty remained before the budget could be finalised.

Auditor general Sir John Bourn said finalising the budget needed to be made a priority so the programme could move forward with confidence.

'The London Olympic and Paralympic Games may seem a long way away, but with a programme of this magnitude it is vital to keep the momentum up. There is a lot more to do and a variety of risks to be managed if the games are to be a success. Failure in any one area will impinge on others.'

PFfeb2007

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