Olympics budget rises again

Government funding for the 2012 Olympic games has risen to £6bn, the culture secretary told the House of Commons today.
To cries of "scandalous" from MPs on the opposition benches, Tessa Jowell said the National Lottery would make an extra contribution of £675m to the cost of the Olympics.
The Conservatives claimed that, with the additional funding, the government's budget for the games had trebled in less than a year. The Tory Olympics spokesman, Hugh Robertson, accused ministers of "raiding" the National Lottery to meet the funding shortfall, penalising clubs and small organisations in the process.

In a detailed statement to the Commons, Ms Jowell said that when Britain put in its bid for the games, the costs of the Olympic Park and infrastructure were put at about £3bn, plus £1bn for regeneration.
After a detailed review, the Olympic Delivery Authority (ODA) would be given a budget of £5.3bn to cover construction costs up to 2012. This comprised £3.1bn for Olympic parks and venues, £1.7bn for generation and infrastructure, and a £500m allowance for programme contingencies.
The ODA would pay £840m in tax but that amount would be "covered in full by the government contribution".
She said the government had set a "prudent" contingency fund of £2.7bn, which could be drawn on only under "very tight conditions" to ensure "the timetable is met and quality maintained".
A figure of £600m had been allocated for wider security.