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New doubts about 2012 Olympics cost and legacy

Summary

Doubts have already emerged about the cost of staging the 2012 Olympic Games and Paralympic Games and whether a lasting benefit can be achieved. While preparations for construction are well advanced, many of the cost figures contained in the bid are seriously outdated.

The Culture, Media and Sport Select Committee, in their Report 'London 2012 Olympic Games and Paralympic Games - Funding and Legacy' (HC 69), raises concerns that costs have arisen that should have been identified in the preparation for the bid.

In addition, clear ‘legacy use’ needs to be identified for each permanent new venue. While achieving a lasting legacy of increased participation in sport by all sectors of the community is a worthy aim, no evidence has been seen that this has been achieved by any previous host city.

Economic benefits from the Games may not be as large as expected: no one can be sure at this stage how much extra tourism will be generated (indeed, the Games might deter some potential visitors).

The Committee believes that more needs to be done if the UK is to achieve all of the potential benefits of hosting the 2012 Games.

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Law-Making Explained

This is a House of Commons Paper (HC 69-I): it is a report from the House of Commons Culture, Media and Sport Select Committee.

Find out more about Select Committees.

How does it affect me?

If you are live in London and are a London Council Tax payer, work in the tourism industry or Lottery-funded arts, charities, heritage or sport, or are interested in the hosting of the 2012 Games, this affects you.

With £900m of extra costs announced, further revenue will need to be found. The Government’s intention that any shortfall must be met exclusively from increased contributions from the National Lottery and the London Council Tax risks placing an unacceptable burden on both, including depriving existing good causes in the arts, charities, heritage and sport of resources.

Read more on the 2012 Olympics.

See future meetings of the Culture, Media & Sport Committee.

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