Treasury says £1bn of VAT costs on construction was not factored in to Games bid
The 2012 London Olympics could have to find an extra £1bn to pay VAT on the construction of infrastructure.
According to the Financial Times, the Treasury told organisers they had not taken VAT costs into account when they submitted their bid for the Games.
In other developments over the weekend London 2012 chairman Sebastian Coe appeared to rule out the possibility of West Ham taking on the main stadium after the Games.
He said football teams would have to stump up over £100m to ensure that there was provision for athletics. He said that none of the clubs looking at the proposal were “remotely in the same ballpark.”
Coe said a London Games would leave a lasting athletics legacy and honour the commitment made to the International Olympic Committee.