To ask the Minister for the Olympics what the original estimate for building cost inflation in the Olympic Construction Budget was for each year to 2012; and what the most recent estimate is for each such year. (229334)

[holding answer 23 October 2008]: The funding envelope of £9.325 billion assumed construction inflation of 6 per cent. per annum. The current but as yet unsubstantiated estimates of inflation indicate a downward trend but in view of the present volatility, the Olympic Delivery Authority advise that a further six months procurement data will be required before any reasonably accurate assessment can be made. Any savings as a result of lower construction inflation will help to offset cost increases.