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Plundering other Lottery funded projects

Negotiations are taking place between the Treasury and the Department for Culture, Media and Sport to establish a new public-sector funding package for the games. The budget for building the venues and infrastructure is £2.375bn, plus £1.044bn for regeneration. The government has already admitted that the £220m security budget will rise and is considering whether to include up to £2bn worth of regeneration work in the Lower Lea Valley - in the area of the games - in the overall budget. The games may also face a £250m VAT bill on construction work.

Additional funding will come either from the lottery or from London's council tax payers, according to an agreement between the government and the mayor of London, Ken Livingstone. On the existing budget the lottery has to raise £1.5bn, with £750m coming from special Olympic-related draws and scratchcards, and £340m from lottery sports funding through Sport England. A further £410m will be diverted from arts, heritage and other good causes from 2009.

From: Lottery causes at risk as bill for 2012 Olympics escalates, Andrew Culf, 13 11 2006, The Guardian

More at: Plundering the Lottery

See also: Not waving but drowning

See also: Childrens Lottery funding raided

See Also: Grass roots funding problems

For the economics of 'opportunity costs see: Opportunity Costs