The spiralling cost of the 2012 Olympics has left the government financially exposed, the Commons public accounts committee has warned. Financial Times
‘The costs of the games were seriously underestimated at the time of the bid and the private sector funding seriously overestimated,’ says a committee report on the risk assessment and management of plans for the Olympics.
Any shortfall in the costs, which are estimated to reach £9.3bn, will be underwritten by the government. Games organisers had omitted tax, contingency margins and security when they originally pitched. Private sector contributions will fall short of the £738m that the Department for Culture, Media and Sport expected.