Jowell ups Olympics cost by £900m

Tessa Jowell has revealed that Olympic delivery partner CLM will take £400m of the predicted £900m rise in the cost of the 2012 Olympic Park, announced to MPs by the culture secretary today.

The CLM consortium, comprising Laing O'Rourke, CH2M Hill, and Mace, will receive the cash to make sure that the games come in on budget.

Jowell attributed the rest of the rise to a doubling in the price of steel and revised transport costs, taking inflation into account in the years leading up to 2012.

The likely cost of the games is now £3.3bn, according to the government.

Jowell indicated that the extra funds are likely to be raised through further increases for London council tax payers, and more lottery money.

The Olympic Delivery Authority (ODA) and the government are reviewing the original budget for the games. They plan to announce a revised financial outlook in February 2007.