Olympics bill could hit £8 billion (From This Is Local London)

Olympics bill could hit £8 billion

12:48pm Monday 20th November 2006 in

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THE true cost of the 2012 Olympics could hit a devastating £8 billion, according to reports.

The figure is far higher than the current £2.4 billion budget which was devised "in a matter of months" for London's winning bid.

Last week 2012 organisers admitted to the London Assembly that the revised budget would be "significantly higher" due to heightened security measures, regeneration projects, a VAT bill and an undisclosed contingency fund.

Revised estimates had put the new budget at £5 billion, but the LA budget committee's report says it will be even higher, according to The Observer.

The dire prediction was based on evidence given to the committee by the Olympic Delivery Authority, the body overseeing the construction of Games' infrastructure.

The committee will meet on Wednesday to demand greater openness from 2012 organisers about the financing of the Games.

The LA fears the spiraling bill will drain public support for the Games.

Assembly chairman Brian Coleman said: "The original £2.4billion budget was wildly inaccurate. They're now saying that it will be £5billion.

"But I would be surprised if they bring it in for under £9billion. It's likely to end up at around £10billion. And at this rate of rise it could be at £20billion by 2012."

ODA acting chairman Sir Roy McNulty and chief executive David Higgins revealed the original budget was developed in a matter of months' when London was preparing its bid.

US engineer Jack Lemley quit as ODA chairman last month saying he didn't want his reputation of being able to deliver projects on time and on budget ruined by the 2012 Olympics.

Mayor Ken Livingstone said Mr Lemley had quit because of poor health, a claim Mr Lemley denies.

The mayor attempted to play down the costs saga, but he was unable to offer a guarantee that Londoners wouldn't pay more.

"I many not be here in 18 months, any guarantee I give about what happens in 2012 is not worth the paper it is written on," he said.