Olympics budget may be 'inadequate'

The £9.3bn budget for the 2012 Olympic Games could yet be overwhelmed by a ‘perfect storm’ of construction prices and a plunging demand for housing, the Independent newspaper reports today.

The article refers to a report produced by City troubleshooter David Ross, which will now be presented to London mayor Boris Johnson.

Ross claims that the £1bn contingency budget for the games may be “inadequate” because of increasing building costs, the credit crunch, slow security planning and delays in agreeing the Olympics’ long-term legacy.

Johnson is today expected to outline his plans for cracking down on spiralling costs for the Olympics.