London’s Olympics will provide a Keynesian-style stimulus to the beleaguered economy, despite the prospect of the government having to bail out 2012 projects, the games’ construction overlord will tell business leaders today.
Not only is the £9.3bn project boosting jobs and businesses but the benefits will be felt for years to come, according to John Armitt, chairman of the Olympic Delivery Authority.
Armitt’s comments to a conference of the CBI employers’ group chime with the belief of Alistair Darling, the chancellor, that an injection of infrastructure spending would provide an economic boost in straitened times.
'The public investment in the games and the benefits this will bring in terms of new jobs, new homes, infrastructure and sporting venues is already boosting the UK economy,' Armitt will say.
'These benefits are directly a result of hosting the games but will also be felt long after 2012.'
The comments suggest organisers may look to turn the economic malaise, which is affecting private sector investment in the Olympics, to its advantage.