Government support for the Bid to host the 2012 Olympic and Paralympic Games in London
On 15 May 2003 Tessa Jowell, the Secretary of State for Culture Media and Sport announced in the House of Commons the Governments' wholehearted support for a bid to host the 2012 Olympic and Paralympic Games in London.
This announcement has followed a thorough analysis with the key stakeholders, the Greater London Authority (GLA) and the British Olympic Association (BOA), of the costs, risks and benefits of bidding for and staging the Games in London in 2012.
Benefits of Bidding
The Manchester Commonwealth Games showed what a successful major sporting event can do for a city and the nation. The Government is confident a London bid gives the best opportunity for the entire country to benefit from hosting the greatest sporting event in the world. Bidding and, if London is successful, hosting the Games will direct further investment to speed up the current regeneration east of the city. Communities will benefit from much needed housing and modern sporting facilities. London, and the rest of the UK, will be reinvigorated as a focus for international tourism.
There will be a lasting legacy for cities and regions across the UK through the development of sports training facilities by NOC's for World Class Athletes competing in the Games. The whole nation will also benefit from the extensive cultural, educational and community initiatives which will be held prior to and during the Games.
Bidding to host the Games also fits with and supports the vision for sport for the next decade as part of the 20-year plan expressed in the Government strategy for sport, "Game Plan".
Cost of staging the Games and Funding
The Government and the Mayor have agreed a public funding package of up to £2.375 billion to help meet the costs of staging an Olympics in London in 2012, including support for elite sport and associated sports investments. In putting together a funding package for the Olympics we have alowed a substantial contingency. This is a cautious response to Arup's estimates of the costs and revenues given that any London Olympics is almost 10 years away and the detailed planning is still to be done.
The first £2.050 billion of the funding package will be met from up to £1.5 billion from the lottery and up to £550 million from London Council Tax, this equates to a £20 a year increase on Band D council tax which would start in 2006/7 after we know whether we will host the Games.
Beyond £2.050 billion provision has been made for a further contribution of £75 million from London Council Tax and then £250 million from the London Development Agency.
A Bid Company has been established to manage the bidding process and will be responsible for putting together all the information required by the International Olympic Committee (IOC) for our bid. Barbara Cassani, former CEO of Go Fly, was appointed as Chair of London 2012 and led the bid in the first phase. From 19 May London 2012 moved into the second phase, with an emphasis on the sporting and international aspects of the bid. To relect this, Lord Sebastian Coe became bid Chairman and President and Barbara Cassani became Vice Chairman. Keith Mills remained as Chief Executive and President International. For details of the London 2012 team, visit the London 2012 website.
The Lea Valley Masterplanning consortium led by EDAW was appointed on 1 August. The plan for the 1,500 acre Lower Lea Valley includes the venues and infrastructure needed for London to deliver the Games and is being closely integrated with existing regeneration programmes underway in the area.
The bid also includes a transport plan. The Olympic Transport Strategy Team is responsible for developing the transport plan for the bid and is based at Transport for London and brings together the key transport providers and interested parties. This team is working very closely with the Masterplanners.
The Bid Company submitted the Applicant City Questionnaire to the IOC on 15 January 2004. On 18 May 2004 the IOC announced that London had been accepted as a Candidate City. We are starting to work on the preparation of the Candidature bid book which will be submitted to the IOC in November 2004.
The IOC will evaluate all the candidate cities and announce the host city of the 2012 Olympic and Paralympic Games in July 2005. View the IOC Olympic Charter
For further information please also see Olympic Bid London 2012 - Frequently Asked Questions