BRITAIN:Britain's government more than doubled the estimated cost of staging the 2012 London Olympics to £9.3b(€13.58) yesterday, drawing charges of "massive financial incompetence" from the Conservative Party.
Sports minister Tessa Jowell's announcement confirmed that the expense of staging the Olympics would be far higher than thought when Britain was awarded the games in July 2005.
London's bid estimated the cost of building the main Olympic sports infrastructure in east London at about £3bn (€4.4bn) and threw in another billion (€1.46bn) for regeneration of the dilapidated surrounding area.
Now the government is budgeting billions more for construction, security, tax and contingency funds.
Ms Jowell said the government would provide an extra £4.93bn (€7.2bn) to fund the games and urban regeneration and that nearly £1bn (€1.46bn) more would be needed from London taxpayers and the proceeds of the national lottery.
"The London Olympics are a project that will change Britain for the better, forever," Ms Jowell told parliament.
The games would bring "huge financial gain" to Britain and act as a catalyst for the most ambitious regeneration programme in recent memory, she said.
Hugh Robertson, sports spokesman for the Conservative Party, slammed the government for not including VAT and a contingency fund in its original estimate.
"The fact that the Olympic budget has almost trebled in just a year is a sign of massive financial incompetence from the government," he said in a statement.
"What confidence can we have that the government will not be back asking for yet more money in years to come?," he asked.
London mayor Ken Livingstone said the Olympics would bring huge benefits to London, with 40,000 new homes to be provided and record investment in transport.
The Olympic Delivery Authority, overseeing construction of the Olympic venues, said the early publication of its budget "gives us the clarity and certainty to build on the excellent progress we have already made".
Sebastian Coe, chairman of the London Olympics organising committee, also welcomed the budget, saying the games would be "the most positive, extraordinary opportunity we have to change the face of sport and the landscape of east London".
The government has been under pressure from the International Olympic Committee, MPs and the public auditor to be clearer about the cost of the games.
Fears over spiralling costs have soured the euphoria that gripped the British capital when it was awarded the Olympics.
Ms Jowell said yesterday that the budget for construction costs was now estimated at £5.3bn (€7.74bn).
A day after Britain won the right to hold the games, four British Islamist suicide bombers killed 52 people on the London transport system.
The capital's police chief has said the 2012 Olympics would be a "huge target" for terrorists.