Olympic Bill increases by £900m
The bill for hosting the 2012 Olympics in London has risen by another £900m.
The Culture Secretary, Tessa Jowell, was hauled in front of MP’s to own up to the rising cost of hosting the Olympics.
What isn’t clear, though, is how much of this £900m is down to the European Federation’s demand that the British government charge VAT on the construction despite the Treasury’s promise not to charge VAT when the bids were put forward. The British government is, of course, powerless to stand by their promise as the European Federation can over-rule them.
A couple of weeks ago the Ignorant Jock said we didn’t have to worry about the VAT bill because it’s just moving money around in the Treasury but fails to tell us how much of the VAT collected will be given to the European Federation because the amount of VAT the Treasury collects determines how much our contributions are.
The phrase “white elephant” springs to mind, I wonder why.
This entry was posted
by wonkotsane on Tuesday, November 21st, 2006 at 11:04 pm and is filed under Federal Europe, Labour and is .
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