New Times,
New Thinking.

  1. Business
  2. Economics
23 October 2012

London Olympics exceed initial budget by £6.52bn

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

By Alex Hern

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.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

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.

Content from our partners
Homes for all: how can Labour shape the future of UK housing?
The UK’s skills shortfall is undermining growth
<strong>What kind of tax reforms would stimulate growth?</strong>