Olympic costs set to double.
"The cost of staging the London Olympic Games in 2012 is set to double. Senior officials organising the Games say construction costs have been seriously underestimated by Tessa Jowell's Department of Culture, Media and Sport.
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A senior figure involved in preparing for the London Olympics said: 'This has the makings of another [Millennium] Dome. Not factoring in construction inflation was a massive oversight.'
Another said: 'It's going to cost £6 billion ... KPMG have been appointed to look across the board at costs.' But Games insiders say cost overruns could be offset by land sales to the private sector once the Olympics are over.
Building the Olympic Park in east London was projected to cost £2.37bn. The city's mayor, Ken Livingstone, assured Tony Blair and Gordon Brown that any overruns would be met by Londoners. On these figures that amounts to an extra £1,000 per household. This means a steep rise in council tax is on the cards in London, as the Chancellor is unlikely to meet any shortfall." |
