Glasgow 2014 Limited, the Organising Committee for the Commonwealth Games, has today announced that funding for the event will increase to £454 million.
The funding boost follows a year of detailed planning for the Games and a thorough review of the budget required to deliver an outstanding Games for Glasgowand Scotland.
A detailed risk register developed by the Games partners has provided a sound basis to increase the funding available for contingencies. This level of planning would not have been appropriate or cost effective at the time of the bid. A number of factors including Legislative changes, and in particular rising broadcasting costs, have contributed to the budget increase.
The additional funding will come from a mixture of public and private money. The Scottish Government will provide an additional £39 million and a £20 million reserve fund, Glasgow City Council will contribute an extra £9 million and the Organising Committee will raise anadditional £13 million through its commercial activities.
The review has been verified by financial advisers PricewaterhouseCoopers. All partners are determined to ensure that the Games are funded adequately and properly and every effort has been made to ensure efficiency savings wherever possible.
Lord Smith, Chairman of the Organising Committee said:
“John Scott and the team at Glasgow 2014, supported by a number of highly experienced external advisers, have completed a detailed and thorough review of the budget requirements for the Games and I am delighted at the quality and professionalism that has been shown throughout. The Organising Committee wishes to stage an outstanding Games that will inspire the people of Scotland and be celebrated in Glasgow, across Scotland and indeed the Commonwealth. Everyone in the Organising Committee also recognises the responsibilities upon us to deliver an efficient and effective Games, minimising the cost to the public purse in these difficult economic times. The Games partners are united in the belief that these Games can be the catalyst for significant change and will generate enormous sporting, social and economic benefits for the whole of Scotland, and we believe that the budget announced today will enable all those potential benefits to be realised.”
Alex Salmond, The First Minister said:
“The Scottish Government is committed to showcasing the best that Scotland has to offer by delivering an outstanding Commonwealth Games. This necessary budgetary increase is challenging for the public purse but the funding boost is good news for 2014 and will ensure an exciting, efficient and effective event.
Bringing the Games to Glasgow will boost business, tourism, infrastructure and regenerate the city. Of course this funding represents an enormous commitment to Glasgow but the benefits and value will be felt throughout Scotland. All partners involved in staging this prestigious event are determined to work together to ensure the best value for money. The fact that 70% of the Games venues are already built will help guarantee no further pressure on the public purse.
The Scottish Government is proud to support 2014. We believe staging the event will provide lasting benefits for generations to come. That’s why we have recently launched a £23.5 million legacy plan to ensure Scotland capitalises on the economic, social and cultural advantages of the Commonwealth Games.
There are still issues to be resolved. The Scottish Government will continue to make the case for the recovery of £150 million lottery funds diverted from Scotland to pay for the London Olympics. And to call for Scotland to receive its share of Olympic regeneration investment. An estimated £165 million has been lost because this funding was not subject to the Barnett formula in the normal way.
However we can’t wait for this to happen to guarantee the position of the Games and therefore this detailed review takes account of all eventualities and will ensure that the Games are funded adequately and properly.”
Steven Purcell, Leader of Glasgow City Council said:
“I am disappointed that it is necessary to increase the budget for staging the Games. However I accept that this has been caused by changing circumstances since we submitted the bid and all the partners have worked very closely to minimise the increase.
The Games will bring real benefits for all Glaswegians and I will do all I can to ensure that those benefits are delivered”.
Michael Cavanagh, Chairman of Commonwealth Games Scotland added:
“Hosting the Commonwealth Games in Glasgow in 2014 is a once in a generation opportunity to transform and enhance Scottish sport for the long-term.
This revised budget will ensure that the partners are able to continue todeliver on their commitment to the Commonwealth to organise an outstanding athlete centred Games and at the same time leave a significant legacy for Scottish sport. We are fully supportive of the proposed budget changes.”