Olympics minister Tess Jowell has published the 2012 Olympic Games second annual report, which indicates that the £9.3bn budget will not be revised, but costs for structures and buildings will have crept by £550M to 2012.
Olympics minister Tessa Jowell said: “Our financial report shows that, with a continued, disciplined search for savings and a sensible use of the contingency funds set aside to manage risks, we remain within budget despite the current economic downturn. It will not be exceeded.”
She went on to say that the Olympic Games could be: “Economic gold” in a recession.
However, accounts show the creeping costs of the major stadiums:
Olympic Village and Media Centre - projected costs: £492M, revised costs: £846M
Olympic Stadium - projected cost: £496M, revised cost: £547M
Aquatics Centre - projected cost: £214M, revised cost: £251M
Other Olympic Park venues - projected costs: £360M, revised costs: £446M
Other non-Olympic Park venues - projected costs: £101M, revised costs: £123M
Total projected costs: £1.663bn, revised costs: £2.213bn
Total increase: £550M
However, financial consequences for the Media Centre and Olympic Village remain: “unresolved” until deals are finalised, which is expected in the spring.
The ODA has managed to compensate for these costs hikes by making considerable savings in site preparation, transport and ‘other’ Olympic projects.
Shadow Olympics Minister Hugh Robertson said: “Although it is reassuring that the overall Olympic budget is as expected, it is a concern that the costs of the stadium keep rising.
“In a recession, with building cost inflation falling, costs should be going down not up.”