Olympic Games: Blair Defends Games As Row Mounts on Spiralling Costs

Tony Blair was yesterday forced to defend the London 2012 Games as the row over the budget intensified during a visit to the capital by leading International Olympic Committee officials.

Games' organisers insisted that the issue of the construction budget was not even on the agenda for the routine two-day project review visit by the IOC team to London 2012's Canary Wharf headquarters.

But it is likely to be raised today during an informal lunchtime meeting between Tessa Jowell, the Olympics minister, and Denis Oswald, chairman of the IOC co-ordination commission, and Gilbert Felli, the IOC's executive director. The IOC is concerned that speculation about the budget is damaging the image of the games and will seek reassurance that the issue will be resolved soon.

The Guardian reported this week that a revised budget of nearly £6bn - double the original estimate - will be announced later this month. Other reports have put the costs even higher at £9bn or £10bn. Blair told the Commons during prime ministers' questions that the budget would be published in the "next few weeks".

"Obviously it's important that we keep the costs properly under control, but I think the Olympics will do an immense amount for London for the whole of the country," he said. The country should be "extremely thankful" London got the Olympics, which would be a huge investment for the future and a wonderful showcase."

Ken Livingstone, the mayor of London, said yesterday that media speculation was "just plain wrong and intended to damage London and the games". "Our intention is to contain it at £5.1bn. There is an ongoing discussion about the cost overruns and VAT," he said.

Hugh Robertson, the shadow sports spokesman, said: "All the speculation is doing enormous damage to the games and is the best possible reason for an open, honest and frank budget announcement as soon as possible."

The Conservatives tabled a series of Parliamentary questions about the involvement of the Chancellor Gordon Brown in drawing up the budget amid claims that he is micro-managing the process to suit his own political ambitions. Jowell and Brown are due to meet tomorrow to discuss the budget.

A spokesman for the department of culture, media and sport, said: "The cost of the games has not been confirmed and the figures being bandied around are a mixture of pure speculation and misunderstanding.

"An announcement will be made in due course once discussions across government about funding for the London games are concluded."