A report to be published today (18 June) by Mayor Boris Johnson’s office will highlight major concerns over the budget for the 2012 Games, which currently stands at £9.3 billion.
The report, by David Ross, co-founder of the Carphone Warehouse, states that the current economic climate, soaring construction costs, slowing demand for housing, and the lack of lending has meant that all major Olympic projects, particularly the £1 billion Athletes’ Village, have hit set-backs.
According to the report, developer Lend Lease ‘is currently having difficulty in both securing the private finance necessary to finalise the transaction and in determining what additional funding is required to make the project viable’.
It is also thought that the Olympic Stadium costs have jumped to £525 million from the last estimate of £496 million made in November last year.
Johnson is expected to give his response to the report later today.