Why is the contingency fund such a large figure?
The overall sum includes a 2.7bn contingency fund which ministers do not expect to spend unless there are unforeseen circumstances. Analysts say the government has set the highest figure it possibly can. It is keen to ensure the budget figure does not keep rising and so has started with a high contingency fund from the outset to prevent a series of embarrassing hikes, says BBC Sports News correspondent James Pearce. Ministers will be mindful of other Olympics where the cost ballooned, he adds. Athens is thought to have cost 7bn in 2002 and Beijing next year is expected to cost anything between 10bn and 20bn. Will contractors be able to hold the government to ransom close to the Games by saying they need money from the contingency fund to complete on time? The government says the contingency fund will be locked away and will “not be easy” to access. Tessa Jowell said part of the government’s protection against being held to ransom was the speed with which they were working. She said the
