Tessa Jowell's maths.

Tessa Jowell has been telling the House of Commons that the Olympics will now cost £3.3bn instead of the original forecast of £2.37bn; the extra money is to pay for bonuses when it is ready on time. (Ananova) There is an obvious discrepancy between £3.3bn and the £5bn expected by most observers or the £8bn suggested by the Observer last weekend. How to explain the maths?

As the Guardian reminds us, clever, Mrs Jowell is not counting:

1. at least £1bn in regeneration funds;
2. extra security costs;
3. a contingency fund;
4. an huge tax (VAT) bill.

In fact, it is becoming evident that nobody has the slightest of idea of what it is all going to cost in the end. The BBC has more on costs and on Jowell

Tags: Olmypic Games