My right honourable friend the Minister for the Olympics and Paymaster General (Tessa Jowell) has made the following Written Ministerial Statement.

I have today published the Government Olympic Executive’s annual report—London 2012 Olympic and Paralympic Games Annual Report February 2010.

The document fulfils the commitment to report to Parliament biannually on details of progress across the Olympic programme and the funding for the Games.

The London 2012 Olympic and Paralympic Games remain on time and within budget. The current anticipated final cost (AFC) is £7.262 billion, compared to £7.241 billion at the end of the last quarter. This represents an increase since the last quarter of 0.3 per cent. The majority of contingency—well over £1 billion—remains unreleased and the Olympic Delivery Authority (ODA) continues to make strong progress in preparing the venues and infrastructure in the Olympic Park.

With more than two-and-half years to go, all the milestones for the Olympic build have been hit, the construction programme is nearly 50 per cent completed, the transformation of east London is well under way, and legacy plans are more advanced than for any previous Games.

London 2012 is continuing to provide economic and social benefits. More than 1,000 companies— 98 per cent of which are UK-based—have won £5 billion worth of direct contracts from the ODA, opening up thousands more business opportunities along the supply chain and helping to support employment around the country. During 2010, the workforce on the Olympic Park and the Olympic Village will peak at 11,000. Of the 6,277 people currently working on the Olympic Park, 20 per cent are resident in the five host boroughs and 11 per cent were previously unemployed.

Meanwhile, the free swimming scheme launched last year produced more than 10 million free swims in its first six months; our target of offering five hours sport per week to under-16s will be on offer in every school sports partnership in England by September 2010; more than 10,000 schools around the country have registered with the 2012 Get Set education programme; and a total of five million people have now participated in London 2012 Games-related projects.

I have today placed in the Libraries of both Houses copies of a memorandum of understanding between the Government and the Olympic Lottery Distributor (OLD). Under this MoU the Government will ensure that the OLD receives a proportionate share, as laid down in the grant memorandum between OLD and ODA, of any income received in relation to the Olympic Village or other assets funded by OLD. This includes receipts from the disposal of the Olympic Village, which should repay the cashflow funding OLD expects to contribute to the village. This commitment applies whether such income is received by the ODA or another public body, or the rights and associated income are retained by the ODA or transferred to another public body.

I should like to commend this report to the Members of both Houses and thank them for their continued interest in and support of the London 2012 Olympics.

Copies of the annual report 2010 are available at www.culture.gov.uk and will be deposited in the Libraries of both Houses.