Cost

The main drawback of hosting the games is the cost. It is predicted that the total cost of staging the Games will be £2.375bn. Currently with the funding sources of Council Tax, the National Lottery, and the London Development Agency, there could be nearly £500million operating loss. However this deficit is hoped to be offset by increased revenue from tourism as a whole however quantifying this can be difficult.

Lack of long-term jobs

The benefits the Olympics brings to the area are numerous, however there is a risk that the public is being misled of the opportunities for jobs, as nearly all of the jobs are likely to be short-term, and after the games it could leave the area still with a high level of unemployment.

 

How the Games will be funded

• £625m raised by increasing London Band D council tax bills by £20, starting in 2006/7

• £250m from the London Development Agency

• £1.5bn from a new Olympic lottery game and form existing lottery funds

Therefore the total cost of hosting the 2012 Games in London is estimated to be £2.375 billion.

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