Olympic costs 'Out of Control' - Cable

12.00.00am GMT Wed 14th Feb 2007

Vincent Cable (Lib Dem MP for Twickenham and Shadow Chancellor) has warned that London residents could be faced with further demands for higher council tax, or charities could be squeezed for lottery funding, because Olympic costs are spiralling out of control.

Vincent Cable said:

"The government and the Mayor of London promised that the cost to be paid from the public purse (including the lottery) would be £2.735 billion and, on this basis, there was all party agreement and the international Olympic committee agreed to the London bid. My understanding is that figures like £7 billion are being discussed as a minimum with figures of up to £18 billion if all the other elements - transport, security, contingency, VAT and regeneration - are included."

He added:

"This is an absolute scandal. Londoners are already committed to having to pay an average of £20 extra on their council tax each year to fund the Olympics and are likely to be asked for more. We have seen valuable local projects denied lottery funds because £340 million is being diverted from sports projects to the Olympics. The Government; is now planning a further massive raid on lottery funds. Failing that Mr Livingstone will be demanding more money from London tax payers. This simply isn't good enough".

"Both as a national figure and a local MP I have a sense of mounting alarm that this massive prestige project is not going to turn out well for the tax payer. It is time for the government and Mayor to be firmly tied to the figure they bid for and, if this means a cut price games with simple venue designs and big-wigs being housed in portacabins then so be it!"