Olympic Park debt deal could mean revision of legacy plans, Assembly hears

5 JANUARY 2012

Olympic Park legacy plans will have to be looked at again in light of a new deal[1] to cover the £231m of debt linked to purchasing the site[2], the Mayor’s Chief of Staff said today.

Sir Edward Lister told the London Assembly’s Budget and Performance Committee that the money tied up in the site is now a key part of the Mayor’s regeneration budget going forward so it needs to be spent to the best advantage of the Greater London Authority (GLA) as a whole.

John Biggs, Chair of the Budget and Performance Committee said: “The new deal, while welcome in the long term, means that the Mayor will have to balance reducing the GLA’s debt against his regeneration aims.

“When we meet the Mayor next week we will ask him how he plans to manage these pressures going forward to ensure he gets the best outcome for Londoners.”

The Committee will question the Mayor directly about his proposed budget for 2012/13 on Tuesday 10 January at City Hall.

Notes for Editors:

  1. According to the Mayor’s draft budget for 2012/13, the GLA will get full receipts from the sale of Sugar House Lane, plus the first £223m in land receipts. After that there will be a 25:75 split between the GLA and Lottery until the Lottery has been repaid in full. Finally there is a 50:50 split between the GLA and central government on any remaining land receipts. The Government will also provide the GLA with an extra £12m in 2011-12 to put towards Olympic land debt costs over the next three years.
  2. The debt the London Development Agency (LDA) took on to pay for the acquisition and remediation of the Olympic Park will transfer to the GLA on 1 April 2012. The GLA is expecting to inherit £349 million of Olympic land debt and sufficient Government funding is being provided to reduce the debt to £231 million by 31 March 2014.  Under the old arrangement, the LDA was expecting grant funding to repay the entire sum.
  3. Watch a webcast of the meeting.
  4. The Chair of the Budget and Performance Committee, John Biggs AM, is available for interview.  See contact details below.
  5. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

 

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