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The London 2012 Olympic and Paralympic Games is set to come in under budget, figures from the Government鈥檚 final quarterly economic report show. The overall cost of the Games is forecast at 拢8.921 billion, a saving of 拢377m on the 拢9.298 billion budget.

In addition, 拢103 million of contingency is being held to cover the remaining risks in the programme, such as the retrofit of the Olympic Village for legacy use and closing out around 2,000 ODA and LOCOG contracts. In total, 拢480m of uncommitted contingency still remains within the budget.

The anticipated final cost (AFC) of the Olympic Delivery Authority鈥檚 (ODA) construction and transport programme is 拢6.714 billion - a decrease of 拢47 million on the previous figure. Savings made by the ODA on its programme have now reached 拢1.032 billion.

Minister for Sport, Hugh Robertson said:

London 2012 was a tremendous success and it is a significant achievement to deliver this large and complex programme on time and under budget. The work of the construction and delivery teams, from the ODA and LOCOG, has set a very high standard and I have no doubt that London 2012 has set a new benchmark for the management of Olympic and Paralympic Games in future.

Dennis Hone, Chief Executive of the Olympic Delivery Authority, said:

We are delighted that the venues and infrastructure that we were responsible for delivering proved to be such a big hit and provided an incredible stage and backdrop for the world鈥檚 greatest sporting event, for millions of spectators, and for Olympic and Paralympic athletes whose performances will never be forgotten. We are pleased to report even more savings made through careful stewardship of public money. We are now entering the final phase of the ODA鈥檚 work, transforming the Olympic Village into thousands of new homes and building a community that will become established, grow and mature in the decades ahead - a London 2012 legacy for generations to come.

Additional funding was released to LOCOG from the funding package, including 拢26 million for capital works with legacy benefits, 拢16m for Government鈥檚 share of the cost of the Paralympic Games, and 拢14 million for Olympic Park venues and infrastructure. These costs are all contained within the overall forecast cost of the programme.

The forecast final costs of the Policing and Venue Security programmes have reduced by 拢20m and 拢39m respectively due to the return of unspent contingency and other savings. The Venue Security reduction does not assume any savings resulting from the enforcement of LOCOG鈥檚 contract with G4S.

The remaining balance of contingency within the Olympic budget now stands at 拢377 million, with an additional 拢73 million available to the ODA to cover assessed risks associated with its post-Games work, principally the Village retrofit. The Government also holds a further 拢30 million of uncommitted contingency set against LOCOG鈥檚 post-Games risks. In total, this leaves 拢480 million of uncommitted contingency remaining.

The change in the ODA鈥檚 anticipated final cost is due to a number of factors, including:

• A total reduction of 拢46 million in transport costs, 拢21m of which is the result of a transfer of work and funding to LOCOG.
• A reduction of 拢15 million in programme contingency to meet assessed risks.
• A reduction of 拢10 million in land and infrastructure costs, partly due to lower than anticipated business rates.
• An increase of 拢36 million in the forecast cost of Olympic Village completion, following internal transfers and a re-assessment of retrofit costs post-Games. This includes buying losses, the continuing impact of contractor insolvency, acceleration and re-phasing to de-risk the programme and ensure transfer to the purchasers by March 2014, enhanced security, and extra assurance costs to ensure delivery remains to timetable.

The ODA is now transforming the apartments in the Olympic Village into thousands of new homes, removing partitions and fitting kitchens. It is also converting the Chobham Academy and Polyclinic/Health Centre into their post-Games configurations. In addition the ODA is also concluding its commercial contracts relating to the Games and returning temporary Games-time venues to their previous use and owners.聽

Notes to Editors

1. .
2. This report covers the period 1 June to 30 September 2012, and makes a forecast of the anticipated final position of the programme.
3. The public sector funding package for the Games announced in March 2007 was 拢9.325 billion. On 24 May 2010, the Government announced that it would be reduced by 拢27 million to 拢9.298 billion.

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