Mayor seeks City financial expert to check growing cost of Olympics

The Mayor, who attends his first Olympic Board meeting today, is looking to appoint an accountant or investment banker to determine whether the £9.3 billion fund for the Games is delivering value for money.

Scrutiny of the budget was one of Mr Johnson's manifesto pledges and he has vowed not to increase the £625million contribution from London council tax-payers.

City Hall's total bill for the Olympics stands at £1.825 billion, including £900million from the London Development Agency and £300 million agreed last year in a new budget.

Concerns over spending were raised in a recent report by MPs which said money was being "spent like water", especially on the £303 million aquatics centre. But, as contracts for three of the "big five" venues have been signed with the developers, it is thought unlikely Mr Johnson will demand design changes for fear of a repeat of the Wembley stadium fiasco.

The Mayor has appointed former newspaper editor Patience Wheatcroft to pore over the books of the LDA but his new financial expert will focus solely on Olympic finances.

An adviser said: "Boris will be looking for high-priced help, such as a top City accountant or investment banker, to determine what really needs money spent on and what doesn't. There is an overwhelming thought that too much is being spent.

"[The expert] will be looking at Government spending, not just the City Hall contribution. All the indications are that Boris is going to be much tougher about the budget than his predecessor was."

The adviser added: "Planning on some venues is too far advanced. Of course the pool complex could have been more utilitarian but there will be a reluctance to ask for changes to that now."

The Mayor has appointed former sports minister Kate Hoey as an adviser on sport. But the Standard understands the Labour MP, an outspoken critic of the 2012 project, will be restricted to advising on how to use the Games to boost sport in the capital.

Sources say she will not be offered one of the Mayor's two appointments to the 2012 boards - the Olympic Delivery Authority and the organising committee, Locog.

At this afternoon's Olympic Board meeting, Mr Johnson will come face to face with Olympics minister Tessa Jowell, who ran Ken Livingstone's campaign for the mayoral election.

Next week, International Olympic Committee inspectors visit London.

The Standard has learned that a report from the IOC will conclude that good progress is being made and its "co-ordination commission" will largely ignore the budget controversy since their last visit a year ago.

Concerns over the budget gained momentum as 2012 chiefs confirmed the cost of the three main venues - the aquatics centre, main stadium and velodrome - have risen substantially above forecasts.

Instead, the IOC's focus will be on technical aspects of staging the Games, from transport to venue preparation and media facilities. It will be the first chance for inspectors to meet Mr Johnson, who will brief them on plans drawn up under Mr Livingstone to convert the 500-acre Olympic Park after the Games.

The commission will tour the Olympic Park in Stratford and Wembley and may also visit Downing Street and Horseguards Parade, the site of the 2012 beach volleyball.

PROGRESS OF THE 2012 PROJECT

Since the International Olympic Committee last visited London, negotiations have advanced on the following venues:

OLYMPIC VILLAGE - Australian developer Lend Lease remains locked in negotiations with the Olympic Delivery Authority over funding of the £800 million athletes' village. The ODA has earmarked £200 million for the public-private scheme but the builders want double that. IOC experts will be told the negotiations to finalise the contract may take months. Proposals to sell the flats to the public "off-plan" will be delayed until the property market picks up.

AQUATICS CENTRE - The budget for the 17,000-seat aquatics centre has more than quadrupled to £303 million, for which contractor Balfour Beatty will also build a bridge which merges into the pool's roof. However, the IOC's enquiries are more likely to focus on the technical specifications of the complex, which includes two 50-metre pools and a diving pool. One of the team will be South African Sam Ramsamy, executive director of the international swimming federation, Fina.

MAIN STADIUM - Next Thursday, the inspectors will attend a photo opportunity to mark the start of piling work on the £496 million venue, which the ODA says is three months ahead of schedule. The London Development Agency continues to search for a post-2012 tenant for the stadium, which will be reduced in capacity from 80,000 seats to 25,000, and is holding talks with rugby clubs and Leyton Orient FC.

MEDIA CENTRE - The contract to build the media centre, the size of Canary Wharf's Canada Square tower, was due to be signed with developer Carillion recently but has been delayed, probably due to recent economic turmoil. Like the village, the centre is public-private funded scheme. Situated in the west of the Olympic Park in Hackney, it is set to become a "digital city" after the Games. It is designed to attract big-name clients from the creative industries, including a London base for Bollywood film-makers. Pending a conclusion to the contractual negotiations, details remain scarce.

VELODROME - Builder ISG recently won the contract for the indoor track cycling facility, meaning British firms are building the three main sports venues. The cost of the 6,000-seat venue has quadrupled to £80 million.

MOUNTAIN BIKE - Games organisers will update the IOC on plans for this event after the original choice of venue, the Weald Country Park in Essex, was considered too flat. London 2012 has spent months looking for an alternative to satisfy international cycling chiefs and the favourite as a replacement venue is 13th century Hadleigh Castle, overlooking the Thames estuary and Essex marshes.