Newspaper reports reveal rising costs and suggest lottery will fund shortfall
Public support for the 2012 Olympics in London is dwindling because of rising costs according to Sunday鈥檚 Observer newspaper.
The paper said that members of the London Assembly now estimated that the original 拢2.4bn for the Olympics was likely to rise more than threefold to 拢8bn, because of rising regeneration and security, and an unexpected 拢250m VAT bill.
Meanwhile a Daily Telegraph report on Saturday said that more cash set aside for National Lottery 鈥榞ood causes鈥� is to be raided to fund the 2012 Olympics.
According to the paper the Lottery has already had to put 拢1.5bn towards the games and that now the cost is expected to double to almost 拢5bn, Lottery funds would have to pick up most of the tab.
A deal struck between the mayor of London, Ken Livingstone and Tessa Jowell, the Culture Secretary any overspend will have to be paid for by the Lottery or London council taxpayers.
But Livingstone has said he will veto any suggestion that the bill should be footed by taxpayers who are already paying 拢625m towards the event.
As the costs of the Olympics are reportedly escalating, a final budget is not expected until the new year following crisis talks between the Treasury, Department of Culture, Media and Sport and the Olympic Delivery Authority.
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