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Government Olympic Executive (Annual Report)

Volume 523: debated on Monday 14 February 2011

I am publishing today the Government Olympic Executive’s annual report—“GOE London 2012 Olympic and Paralympic Games Annual Report February 2011”. This report explains the latest budget position as at 31 December 2010, and outlines the many wider economic, sporting and social legacy benefits to the UK.

The overall public sector funding package for the games remains at £9.298 billion following the spending review announcement on 20 October 2010. The funding package will, however, be reconfigured from April 2011 to make provisions for operational requirements, reflecting the changing focus of the programme from construction to operational delivery. Also from April 2011, Government funding for the programme—excluding security which sits with the Home Office and other Government Departments—will be held by the Department for Culture, Media and Sport.

The London 2012 Olympic and Paralympic games remain on time and within budget. The Olympic Delivery Authority’s (ODA) anticipated final cost (AFC) now stands at £7.301 billion, which includes additional funding of £57 million for park operations.

Park operations are the additional responsibilities taken on by the ODA for the operation of the Olympic park and its venues and facilities between 2011 and the handover to legacy owners by 2014. On a like-for- like basis, excluding the park operations budget, the current AFC has increased by £12 million from that of 30 September 2010. The £12 million increase is a consequence of several movements across the programme including forecast savings on the Olympic stadium, security and logistics, offset by forecast increases for infrastructure such as utilities and landscaping. Around £0.5 billion of contingency remains available for programme-wide risks. A total of over £780 million in savings has been achieved by the ODA since November 2007.

The ODA continues to make strong progress in preparing the venues and infrastructure in the Olympic park, with 79 per cent of the programme to the 2012 games now completed. The Olympic stadium is structurally complete with the cable net roof covered, all 14 lighting towers in place and all spectator seats installed. The Aquatics Centre permanent structure and roof are in place, with the structures of the temporary seating stands for games-time spectators nearing completion. The Velodrome remains on target to be the first Olympic park sporting venue to be finished later this month. The structures of the handball and basketball arenas are now completed, with work progressing on the venues’ interiors. The structures of the international broadcast centre, main press centre and multi-storey car park are all complete. Recent milestones of the project include the completion of the first brand new venue, the Lee Valley White Water Centre at Broxboume and the official turning on of the Olympic stadium lights by the Prime Minister and Mayor of London. As of December 2010, over 12,000 people were working on the Olympic park and Olympic village.

In December 2010, the Government published a legacy plan, which sets out the legacy vision for the 2012 Olympic and Paralympic games and the detailed plans underpinning it. The Government are committed to making the most of the games for the whole of the UK. It has identified four areas to focus on: Harnessing the UK’s passion for sport to increase grassroots participation, particularly by young people, and to encourage the whole population to be more physically active; exploiting to the full the opportunities for economic growth offered by hosting the games; promoting community engagement and achieving participation across all groups in society through the games; and ensuring that the Olympic park can be developed after the games as one of the principal drivers of regeneration in East London.

I would like to commend this report to the members of both Houses and thank them for their continued interest in and support for the London 2012 Olympic and Paralympic games.

Copies of the GOE annual report February 2011 are available online at: and will be deposited in the Libraries of both Houses.