Olympics bill trebles to £9bn

Olympics minister Tessa Jowell told MPs the total construction costs of the 2012 Olympics will be £5.3billion - that figure compares with an initial budget of £2.4billion, and does not include a further £2.7billion contingency fund.

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Jowell also announced revised figures on security and VAT that sees the total estimated budget for the Games now at £9.325billion.

Jowell said that an extra £675million would have to come from the Lottery - provoking Sport England chairman Derek Mapp to claim their income would fall and that would damage grass-roots sport.

Mapp said: "Our support for the 2012 Games is unquestioned and we know the Government has had to make tough choices.

"However, the decision to divert a further £55.9million of Sport England's share of lottery income between 2009 and 2012 to fund the 2012 Olympic/Paralympic Games is a cut too far and seriously endangers the creation of a sporting legacy from the 2012 Games.

"This cut is a real blow to community sport in England."

At the time of the bid, the Lottery and London contribution was estimated at £2.4 billion and since then, the Government had announced it would contribute a further £1billion, Jowell said.

She added: "I can announce today that central government provision will be £6billion.

"This comprises the £1billion already committed for Olympic regeneration, the funding of the tax bill, broader regeneration and infrastructure within the Park, wider security and contingency."

She said London mayor Ken Livingstone had pledged £300million without increasing council tax or transport cost.

From the Lottery, Jowell said she planned to "transfer" after 2009, £425million from the Big Lottery Fund and £250million from other good causes.

"The decision has been taken only after very careful consideration and implementation will only take place after full consultation about the implications with the Lottery distributors and other stakeholders," she said.

Hugh Robertson, shadow Olympics Minister, said: "The fact that the Olympic budget has almost trebled in just a year is a sign of massive financial incompetence from the Government.

"The two largest cost over-runs, VAT and contingency, were perfectly predictable at the time of the bid.

"In raiding the lottery for a further £675million to make up the shortfall, the Government will penalise precisely the clubs and small organisations up and down the country that were supposed to benefit from the Olympics."

Richard Yule, chief executive of the English Table Tennis Association, also criticised the announcement.

He said: "An increase in sports participation is the most important legacy that the London Games can bring and was at the heart of the vision expressed so powerfully by Seb Coe in Singapore.

"This cut in funding to community sport will impact on the ability of national governing bodies to capitalise on the once-in-a-lifetime motivational impact of a home Olympics to deliver an increase in participation through their clubs and volunteers."

2012 bill

Olympic Park and venues: £3.1billion

Regeneration and infrastructure: £1.7billion

Contingency fund: £2.7billion

VAT: £840million

Security: £600million

Funding for community sport and Paralympics: £390million

TOTAL: £9.33billion

2012 funding

Government: £6billion

Mayor of London: £1.175billion

Lottery: 2.175billion