This compares with £8.92 billion ($13.5 billion/€10.3 billion) at the last update in October 2012 and just under £9.3 billion ($14.1 billion/€10.7 billion) in the so-called Public Sector Funding Package (PSFP).

The main factors contributing to the latest £151 million ($229 million/€174 million) reduction were an £85 million ($129 million/€98 million) cut in venue security costs, a £32 million ($48 million/€37 million) drop in policing and wider security costs and a £20 million ($30 million/€23 million) payment from London 2012 following its winding-up.

The reduction in venue security costs is exactly equal to the £85 million ($129 million/€98 million) adjustment agreed between London 2012 and G4S, the security giant that failed to supply the staff it promised for the Games, under a deal announced in February.

The £85 million ($129 million/€98 million) total covered £48 million ($73 million/€55 million) for additional military, police and other costs incurred by London 2012 and a £37 million ($56 million/€43 million) reduction in project management and operational costs.


The world's biggest security firm revealed just weeks before the Games that it could not provide 10,400 guards, forcing the Government to call on military and police personnel to cover the shortfall.

London 2012 said in May that it would pay "approximately £20 million ($30 million/€23 million)" to the Department for Culture, Media and Sport (DCMS) to "fulfil commitments under certain Government grant agreements, such as the grant to cover the rental cost of the Village after it passed into public ownership".

This and other payments made by London 2012 to the British Olympic Association (BOA) and the British Paralympic Association (BPA) overrode the terms of the Host City Contract, which stipulated that 20 per cent of any surplus would go to the International Olympic Committee (IOC), with a further 60 per cent to be used for "the general benefit of sport in the UK".

Hugh Robertson, Minister for Sport, said that, as the one year anniversary approaches, "we can look back on last summer as a nation with a real sense of pride".

Contact the writer of this story at [email protected]


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