2012 Olympics legacy costs rocketing, London Assembly fears

08 February 2010

By Mike Brooke

THE ‘legacy’ from the 2012 Olympics could cost far more than City Hall has budgeted for, the London Assembly fears.

Concerns have been raised over uncertainties in Boris Johnson’s capital investment proposals which include the Olympics park in East London.

The London Development Agency has not yet reached agreement with the Government on the settlement for the massive parkland, which could leave uncertainties about its budget for next year, the Assembly’s Budget committee says.

It could affect non-Olympic projects if the LDA has to cover more of the costs beyond its £9 million contingency.

Figures provided by the agency “do not contain the detail needed to assess accurate budgets and stick to them,” says the committee in its response to the Mayor’s draft Capital Spending plan.

Committee chair John Biggs, whose own City & East London contingency includes the parkland, said: “Until these issues are resolved, uncertainty remains about the level of capital investment in London over the next financial year.”

Assembly members are also worried about how Transport for London would find extra cash if Tube Lines would be justified claiming even higher costs for upgrading the Underground in the next seven years than City Hall has allowed for in the plans.

The Committee in its Response calls for additional information and some changes to the way the figures are presented “to make the Mayor’s plans clearer.”