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VAT cut gives extra £25m cash to Olympics
Matthew Beard, Sports News Correspondent26 Nov 2008
EMERGENCY measures to boost Britain's economy have provided a £25million bonus for the London Olympics.
The Olympic Delivery Authority expects to make the savings in building costs due to a 2.5 per cent reduction in VAT until the start of 2010.
During the bidding process Olympics chiefs had hoped to avoid paying VAT on the Games project but were instructed by the Treasury that it was payable, bringing the total budget to £9.3billion.
An ODA source said: "We are still determining the implication of the short period of VAT reduction and use of any consequent savings." The extent of the savings will emerge in January when Olympics minister Tessa Jowell gives her quarterly budget update to Parliament.
Meanwhile the head of Britain's athletes' union today added to doubts about a government scheme to raise £79million to boost Britain's 2012 medal haul. It aims to raise funds by hiring out athletes to companies.
But Pete Gardner, chief executive of the British Athletes Commission, said: "The top 20 or 30 athletes are worth an awful lot but below that level their value to a company goes down. Athletes beneath that tier may not be of any significant value commercially."
Reader views (2)
I seem to remember that the original Olympics proposal "forgot" to add VAT to the final bill. So how come they now claim to be £25m better off if they budgeted zero in the first place? KPMG must be doing some very creative accounting...
- Nobby Clark, Perth, Scotland, 26/11/2008 15:34
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must be the only winner from this crackpot giveaway.
- Fly, london, 26/11/2008 10:11
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