Treasury adding to costs of 2012 Olympics, MPs claim
· Cautious approach blamed for estimated budget rise
· Financial planning ahead of schedule, says Blair
Tuesday January 23, 2007
A powerful committee of MPs will accuse the Treasury tomorrow of adding £2bn to the cost of the Olympics with its overcautious approach to funding the 2012 games.The Labour-controlled culture select committee will side with Tessa Jowell, the culture secretary, in what has turned into a bitter row over the best approach to pay for the event.
Costs have already risen due to a variety of pressures including more intense security, construction inflation and an unexpected Treasury ruling that the Olympics Development Authority must pay VAT……