1. The preparations for the 2012 Games involve a range of central government and other organisations. The Host City Contract is between the International Olympic Committee, the Mayor of London, the London Organising Committee for the London Olympic Games and Paralympic Games (LOCOG), and the British Olympic Association (BOA). There is, however, no one person in charge or accountable, and there is instead a partnership between the Mayor, the Chairs of LOCOG and the BOA, and the Olympics Minister—the members of the Olympic Board. The Board has agreed and assigned accountabilities for the separate elements of the programme (Figure 1).[2]

Figure 1: The London 2012 Programme - key activities and responsibilities

2.  Within central government the preparations are being led by the Government Olympic Executive, part of the Department for Culture, Media and Sport.[3] The Government Olympic Executive is responsible for providing assurance to the Government and the Olympic Board that the programme is being well managed.[4] The Executive is also responsible for providing effective governance, and risk and financial management, for the Games as a whole. The Executive is working with a range of delivery bodies. The Olympic Delivery Authority is responsible for the construction of venues and associated infrastructure. LOCOG is responsible for staging the Games.[5]

3.  In our June 2007 Report[6] on the preparations for the Games, we recommended that the Department should develop arrangements for progress and risk reporting. Individual organisations have their own arrangements. The Government Olympic Executive, however, is still developing an overarching programme plan to identify the critical links between elements of the programme. In addition, the Executive's arrangements for identifying and managing risks across the programme have not been finalised.[7] Consequently, the Executive is not yet in a position to provide the Olympic Board with a complete analysis of the major programme risks. The Executive expects its work in these two areas to be completed by the end of 2008, more than three years after London was awarded the Games.[8]

4.  The prospect of the legacy that Games would bring was an important element of London's bid.[9] In June 2008, the Department published its Legacy Action Plan,[10] which set out how five key legacy promises would be delivered.[11] The promises are to: make the UK a world-leading sporting nation; transform the heart of East London; inspire a new generation of young people to take part in volunteering and physical activity; make the Olympic Park a blue print for sustainable living; and demonstrate that the UK is a creative, inclusive and welcoming place to live in, visit, and for business.[12]

5.  Although we have previously highlighted a lack of clarity about how venues will be used after the Games, plans have not yet been completed.[13] For example, it remains unclear whether, in addition to athletics, the Main Stadium will be used for football or rugby.[14] Meanwhile the absence of fully developed business plans and confirmed owners and operators for the permanent venues is creating uncertainty for the Olympic Delivery Authority. A business plan for the future of the Olympic Park is not due to be completed until May 2009, almost four years after London was awarded the Games.[15] The timing and cost of the Delivery Authority's projects could be affected, particularly if there were to be a need to change deals already agreed with contractors.[16]

6.  The Olympic Delivery Authority sees the ultimate legacy being the regeneration of East London, with the creation of long-term jobs and economic development, including an improved transport infrastructure. Over 10% of the people working on the Authority's projects were previously unemployed, and 70% of contracts have been let to small and medium enterprises.[17] The preparations for the 2012 Games, however, are part of a much wider programme of public spending on the regeneration of East London.[18] For example, the Delivery Authority's transport strategy is based on some £5 billion of transport improvements (outside the budget for the Games) being funded primarily by the Department for Transport and Transport for London.[19]

7.  In March 2007, the Department told us that an operational plan for policing and wider security was being drawn up, and that the preliminary estimate was £600 million. There have been problems with co-ordination across multiple departments and agencies, however, and well over a year later there is still no fully costed plan. The Department now expects the plan to be completed by December 2008. Advisers for the Metropolitan Police and other security agencies have been reviewing the Delivery Authority's plans as they have developed. But the delay in security planning has increased the risk of time delays and cost overruns if late changes to the Olympic Delivery Authority's plans are required.[20]

3   C&AG's Report, para 2 Back

4   C&AG's Report, paras 1.10, 1.14 Back

5   C&AG's Report, paras 1.10-1.11, 1.15; Figure 2 Back

6   Committee of Public Accounts, Thirty-ninth Report of Session 2006-07, Preparations for the London 2012 Olympic and Paralympic Games-Risk assessment and management, HC 377 Back

7   Qq 1-3 Back

8   Q 2; C&AG's Report, paras 1.13, 1.20-1.21 Back

9   C&AG's Report, para 3.37 Back

10   C&AG's Report, para 3.43 Back

11   Q 69 Back

12   C&AG's Report, Figure 13 Back

13   Q 82; C&AG's Report, para 3.37 Back

14   C&AG's Report, Figure 12 Back

15   Qq 52, 83-84; C&AG's Report, para 3.39 Back

16   Q 52; C&AG's Report, para 3.40 Back

17   Qq 52, 87 Back

18   C&AG's Report, Preparations for the London 2012 Olympic and Paralympic Games: Risk assessment and management, HC (2006-07) 252, para 88 Back

19   C&AG's Report, para 2.24 Back

20   Qq 51, 71-72; C&AG's Report, paras 3.33-3.34, 3.36 Back