Despite the fact that we are now facing the worst recession for decades, the costs of the 2012 Olympics are defying normal economic laws during a recession and are continuing to rise.
The Telegraph reports that the cost of venues have risen by £97M in the last year, and are projected to rise by a total of £371M by 2012. It also notes that there is now only £500M of the £2BN contingency fund left to cover unforeseen emergencies and shortfalls.
Despite all of this the hapless Olympics Minister, Tessa Jowell, stated:
"This shows we are on course to remain on budget despite the economic downturn."
Jowell may care to reflect on the accuracy of that statement. The original "budget" for the Olympics was around £3BN, it now currently stands at £12BN (including £2BN running costs).
Precisely how can she claim, with a straight face, that the budget is "on course"?
Olympic Medals won during the Beijing 2008 Olympics
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