Within Central Government, preparations for the London 2012 Olympic and Paralympic Games are being led by the Government Olympic Executive (the Executive), which is part of the Department for Culture, Media and Sport (the Department). The Executive is responsible for co-ordinating the activities of a wide range of organisations, including the Olympic Delivery Authority, which is responsible for the construction of venues and associated infrastructure. The London Organising Committee for the Olympic Games and Paralympic Games (LOCOG) is responsible for staging the Games.

Whilst individual organisations have their own programme management arrangements, the Government Olympic Executive has not yet developed a plan for the programme as a whole, or finalised arrangements for identifying and managing risks across the programme.

The Olympic Delivery Authority has established a baseline detailing the scope, cost and timings of its projects. The forecast construction completion dates have slipped for the Main Stadium and the Aquatics Centre, but the Delivery Authority still expects to complete its construction activities in time to allow for test events before the start of the Games.

The prospect of the legacy that the Games would bring was an important element of London's bid, but a business plan for the future of the Olympic Park is not due until May 2009. An operational plan for policing and wider security has been under development for well over a year and is now due to be completed by the end of 2008. Continuing uncertainty over legacy and security, and the need to take account of lessons from Beijing, will bring pressure for change on the venues and infrastructure, at a time when construction work should be well underway.

The Olympic Delivery Authority has not yet reached agreement with Lend Lease, its preferred developer, on a deal to build the Olympic Village. The deal has been delayed by uncertainties in the financial and property markets and the ability of the private sector to raise finance. Pending finalisation of the deal, the Delivery Authority has paid for site preparation work to continue. The Delivery Authority has reduced the planned number of apartments to be provided after the Games from 4,200 to 3,300.

By March 2008, the Olympic Delivery Authority was forecasting total spending of £7,111 million, £16 million more than its November 2007 baseline of £7,095 million. The loss of competitive tension in procurement of the Main Stadium and the Aquatics Centre has contributed to the £106 million increase in forecast venue costs, with offsetting decreases in the costs of site preparation and infrastructure. The Department remains confident that repayment of £675 million to the National Lottery from land sales after the Games, will be achieved despite the downturn in the property market. The Department assured the Committee it will stay within the total £9,325 million budget for the Games.

On the basis of a report by the Comptroller and Auditor General,[1] we took evidence from the Department and the Olympic Delivery Authority on the progress made in preparing for the London 2012 Olympic and Paralympic Games.