UNITED KINGDOM/FILE: London 2012 Olympic Games could go over its 9.3 billion pound budget, the UK's spending watchdog warns as the bill for venue security almost doubles

Record ID: 332448

  • Title: UNITED KINGDOM/FILE: London 2012 Olympic Games could go over its 9.3 billion pound budget, the UK's spending watchdog warns as the bill for venue security almost doubles
  • Date: 7th December 2011
  • Summary: LONDON, ENGLAND, UK (FILE ) (REUTERS) PAN OF EXTERIOR OF OLYMPIC STADIUM
  • Embargoed: 22nd December 2011 12:00
  • Keywords:
  • Location: United Kingdom
  • Country: United Kingdom
  • Topics: Economy,Sports
  • Reuters ID: LVAEPEU39982H6HZH9EGKS0MB66N
  • Story Text: London is in danger of exceeding its 9.3-billion-pound ($14.61-billion) budget for the 2012 Olympics unless rigorous action is taken to curb costs, Britain's spending watchdog said on Tuesday December 6).
    The National Audit Office (NAO) also said it was concerned that the venue security bill had nearly doubled to 553 million pounds, while question marks remained over the city's transport plans.
    The NAO said 354 million pounds was left in the Olympic contingency coffers, but residual risks could reduce that to 36 million.
    "We think there is a real risk they will need to spend more money unless they take rigorous action to control their costs," said Ashley McDougall, a member of the NAO study team.
    The government says the Olympics are on time and on budget, with more than 500 million pounds of uncommitted contingency funds available.
    However, the figures are likely to cause concern as it pursues a package of severe public spending cuts to rein in a record budget deficit.
    About 92 percent of the Olympics construction is complete, with the biggest residual risks likely to come from national security planning and supply chain issues, the report said.
    On Monday, the government said an extra 13,700 security guards, including an unspecified number of soldiers and volunteers, would be needed on top of the 10,000 already planned to secure the inside of the Olympic venues, resulting in an anticipated extra cost of 271 million pounds.
    The report said finding the additional guards would be a "significant recruitment challenge".
    "I think the largest increase since last time was venue security. It was 282 million, it's now 551 million pounds and they have doubled the number of guards that they need, so there is a real pressure on that.
    "The more money they spend on that the less money there is available for other things like transport, like technology. So that is where the real pressure is coming on the budget," said McDougall.
    London Mayor Boris Johnson said he was still confident the Games would come in under or on budget.
    "They are right to be vigilant about Olympic financing just as we are in City Hall. I am still confident talking to the ODA, talking to everybody involved, talking to LOCOG that we can come in under the 9.3 billion which I've always said we would," he said.
    Johnson also said funding the Olympics was a good investment as it would provide a lasting legacy for London.
    The NAO report also said transport plans on London's notoriously jammed, narrow streets were behind schedule, with consultation on most of the traffic regulation orders pushed back to March 2012.
    London Olympic organisers hope to persuade businesses to increase flexibility in shift patterns, with staff working from home or changing their hours. Businesses will also have to plan deliveries at different times.
    The NAO, in its sixth report on the Games, said the country was failing in its Olympic ambition to get more people involved in sport.
    The previous Labour government had promised to get a million additional people doing 30 minutes of sport three times a week by 2013, but the NAO said just 108,600 extra people had taken up more sport.
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