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Final 2012 Games budget to be set Mayor says no tax rise for Games
(about 3 hours later)
Details of the final budget for the 2012 Olympics in London are to be announced by the government amid fears costs have spiralled out of control. Londoner's will not pay any more after the government announced a rise in the Olympic budget, the mayor has said.
The original estimate for hosting the games and regenerating the area was put at £3.4bn - in November organisers said this figure would rise to £5bn. Culture secretary Tessa Jowell said the cost of hosting the 2012 London Olympics has nearly trebled to £9.35bn.
In January a report by MPs criticised the government's handling of the project's finances. Mayor of London Ken Livingstone said he will not increase the current 38p a week contribution on the council tax to the Olympic Games.
Culture Secretary Tessa Jowell is to make the announcement in the Commons. The London Assembly Tories said the extra £675m taken from the lottery will affect projects across the city.
Last week the Commons Public Accounts Committee was told that question marks remained over the security budget and the contingency fund which the government is insisting on. Mr Livingstone said to get the Games "for the price of a walnut whip a week is a bargain".
The core Olympic budget doesn't move a great deal Prime Minister Tony Blair It is clear that the assurances given by the mayor and Tessa Jowell that the original budget was totally robust have been blown completely out of the water Tory Bob Blackman
There have also been fears that money may be siphoned off from the National Lottery to make up any shortfall of cash. "Londoners will not pay a penny more than the current 38p a week contribution on the council tax to the Olympic Games," he said.
The prime minister would not be drawn on the budget figures when he spoke during a visit to Westway Sports Centre in west London, on Thursday. "Today's announcement delivers that promise. The statement makes clear there will be no future rise in council tax to finance the Olympic Games."
Mr Blair said: "There is a lot of alarmist stuff about this. We have an Olympic budget. But Bob Blackman, London Assembly Conservative spokesman for the Olympics said: "It is clear that the assurances given by the mayor and Tessa Jowell that the original budget was totally robust have been blown completely out of the water by today's announcement.
"At the end of the day, the thing to remember is that the money we are investing in the Olympics is money for the country. "The months of speculation are finally over but there is not a shred of good news for National Lottery who will have their good work in London decimated for the next five years whilst contributing an additional £675m."
"The core Olympic budget doesn't move a great deal." Darren Johnson, from the Green Party on the London Assembly, said: "This cost rise means that the Olympics will be costing over half a billion pounds a day for the 17 days of the Games.
The Local Government Association (LGA) has warned the costs must not fall "disproportionately" on London council tax payers and that the final budget must be realistic. "We need to ensure that the Olympics budget is spent on the long-term regeneration of east London, not on flamboyant stunts and white elephants."
Chris White, chairman of the LGA culture, sport and tourism board, added: "The government has a very tough decision to make over the future funding of the games and councils will be keeping a close eye on the impact... on charities and voluntary groups."