London risks exceeding Olympic budget

OLYMPIC GAMES NEWS: LONDON RISKS exceeding its €10.8 billion budget for the 2012 Olympics unless rigorous action is taken to curb costs, Britain's spending watchdog said yesterday.

The National Audit Office also said it was concerned the venue security bill had nearly doubled to €643 million, while questions remained over transport plans.

The body said €411 million was left in the Olympic contingency coffers, but residual risks could reduce that to €41 million.

“In our view the funding package of £9,298 million is currently so finely balanced there is the real risk that more money will be needed unless there is rigorous action to control costs in ways that represent value for money,” its report said.

The British government says the Olympics are on time and on budget, with more than €581 million of uncommitted contingency funds available. However, the figures are likely to cause concern when a package of severe public-spending cuts are pursued to rein in the country’s record budget deficit.

About 92 per cent of construction for the Olympics is complete, with the biggest residual risks likely to come from national security planning and supply-chain issues, the report said.

Margaret Hodge, chairwoman of the Committee of Public Accounts, said it was “deeply worrying that at this late stage plans for venue security are not further advanced”. The report said finding the additional 13,700 guards needed, at an anticipated extra cost of €315 million, would be a significant challenge.