IOC tightens bid budget rules

The row over the spiralling cost of the London 2012 Olympics has led to future bidding cities being ordered to provide more accurate budgets of costs.

The International Olympic Committee (IOC) has told the seven cities bidding for the 2016 Games to give the final cost estimates in 2016 prices – and not just when submitting their bid seven years earlier.

An IOC spokeswoman told the Evening Standard: “The changes have come from a recommendation from London and Vancouver when we did a debrief with them. It will now be more clear what to expect in terms of Games costs.

“Although it is very difficult to make precise forecasts seven years out, we feel this will reduce the chance of surprises occurring. This is a more transparent system.”

Last week, London Olympics chiefs revealed the cost of the main stadium had risen to £496m – almost twice the estimate of £280m which was submitted during the bid at 2004 prices.

The Olympic Delivery Authority say the price takes into account inflation and VAT.

Baku, Chicago, Doha, Madrid, Prague, Rio de Janeiro and Tokyo are the cities bidding for 2016.