February 28 - London 2012 is set to be delivered more than £500 million ($790 million/€572 million) under budget, according to figures released today by the Department for Culture, Media and Sport (DCMS).
Up to £527 million ($836.82/€622 million) of uncommitted contingency is still available from Olympics and Paralympics budget of £9.3 billion ($14.6 billion/€10.8 billion).
The figures were unveiled in the Government's February 2012 Olympic Quarterly Economic Review released to coincide with 150 days to go to the start of London 2012 with the Olympic Delivery Authority's (ODA) construction programme now 96 per cent complete.
The new figures mean that over £100 million ($158/€119 million) of the money allocated for London 2012 is now likely to be given back to the Treasury which is a major boost for the Government after the National Audit Office said last year that there was a real risk exceeding the overall budget due to a huge increase in the security budget.
"With 150 days to go to the Games, we remain on time and within budget with more than £500 million ($790 million/€572 million) of uncommitted contingency remaining," said the Minister for Sport and the Olympics Hugh Robertson.
"This puts us in a strong position and gives me increasing confidence that we can deliver the Games under budget."
It was also revealed that the ODA has achieved £38 million ($60 million/€45 million) of new savings in the quarter October to December 2012, taking the total achieved since the November 2007 baseline to more than £950 million ($1.5 billion/€1.1 billion).
"Once again we can report that the expected final cost of the venues and infrastructure for London 2012 is down, with costs squeezed again," said ODA chief executive Dennis Hone.
"We remain on the Olympic Park to complete the parklands, roads and spectator access.
"We will complete our role by working with transport operators to get spectators to venues and keep people moving, licensing and enforcing the rules for trading and advertising, concluding contracts and transforming Games-time apartments in the Olympic Village into homes for families after the athletes are gone."
The remaining balance of contingency within the public sector funding package now stands at £425 million ($675 million/€501 million) with an additional £102 million ($162 million/€120 million) available to the ODA in programme contingency to cover assessed risk.
Contact the writer of this story at [email protected]
December 2011: London 2012 could still go over budget, warns National Audit Office
December 2011: Government increase security costs for London 2012 by £271 million
May 2011: London 2012 construction programme budget descreases by £35 million
February 2011: Olympic costs increase but project still on time and on budget
November 2010: Final cost of London 2012 revised down £29 million as plans for Olympic Stadium wrap shelved