November 1, 2004
Question written on 01/11/2004
To ask the Secretary of State for Culture, Media and Sport (1) whether Point 17 of the Olympic Funding: Memorandum of Understanding between the Government and the Mayor of London requires council tax payers in London to fund any overspend assoc
Answered by Richard Caborn
The robust and business-like approach to planning and financial controls on the part of the Olympic Stakeholders is designed to prevent such overspend. As the memorandum of understanding, laid before Parliament as Command Paper 5867, states in paragraph 17, in the event of any overspend the Government will be the ultimate guarantor. We further reported this to Parliament in a departmental minute dated 2 December 2003. As the memorandum goes on to say, the Government expects to discharge that responsibility (should it arise) in a sharing agreement to be agreed as appropriate with the Mayor of London and through seeking additional national lottery funding in amounts to be agreed at the time. At this stage however, no such specific sharing arrangements exist. Whatever the arrangements which might apply, levels of any London council tax precept would be a matter for the Mayor of London.