London Olympics exceed initial budget by £6.52bn

When is "under budget" not "under budget"?

BBC News, 1 February 2007:

How much will the Olympics really cost?

The overall budget for the London Olympics submitted in the bid to the International Olympic Committee was £2.4bn.

The figure came from a study carried out by construction company Arup in May 2002. It predicted the cost of the Games to be £1.8 billion.

The government then commissioned another report in 2004 carried out by accountants PriceWaterhouseCooper, who put the figure closer to £3.2bn. The government settled for a compromise figure of £2.4bn.

BBC News, 23 October 2012:

London 2012: Olympics and Paralympics £377m under budget

The cost of the London Olympics and Paralympics will be £377m less than expected, according to the Government.

The combined budget for the two events was £9.29bn, but the projected cost is £8.92bn.

Savings came from a drop in security, transport and construction expenses.

In other words, "Our £6.89bn overspend was actually just a £6.52bn overspend when all things are taken into account! Huzzah!"

The latest BBC News story doesn't even mention the original estimates at all, although an earlier news story - from July - at least featured Hugh Robinson evading the question: 

Addressing the original bid budget of £2.4bn, Sports Minister Hugh Robertson said there was a "recognition right from the word go that figure would have to change dramatically on the basis of delivering the Games".

We have always been at war with Eastasia.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Police shoot man in parliament

A man carrying what appeared to be a knife was shot by armed police after entering the parliamentary estate. 

From the window of the parliamentary Press Gallery, I have just seen police shoot a man who charged at officers while carrying what appeared to be a knife. A large crowd was seen fleeing from the man before he entered the parliamentary estate.

After several officers evaded him he was swiftly shot by armed police.

Ministers have been evacuated and journalists ordered to remain at their desks. 

More follows. Read Julia Rampen's news story here.

Armed police at the cordon outside Parliament on Wednesday afternoon. Photo: Getty

George Eaton is political editor of the New Statesman.