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A report has revealed the positive impact of hosting the Olympic games but at the same time funding for grassroots sport has slumped. Sports have seen a 22% drop in funding according to figures obtained from the Conservatives leaving the government open to accusations it is diverting funds to cover the 2012 games. Spending on heritage projects fell in the last decade by 38% to £423 million and Sport England, who funds community sports, saw £395 million in funds switched to prop up the event. Jeremy Hunt, the Tory Culture spokesman said: "These figures demonstrate just how damaging Labour's lottery raids have been in terms of delivering on our commitments to 2012. How can they possibly call it an Olympics for everyone if they have slashed spending on grassroots sport on this scale. Labour has increased spending on these areas yet it has not made up for their successive raids on lottery funding."
30% export boost - Britain's benefits "not clear" In good news studies from the University of California and the San Francisco Federal Reserve show a massive 30% boost in exports by successful Olympic bidders. However, this figure is also shared by countries that bid, lost and did not have to build the billions on stadiums and arenas. China secured entry into the World Trade Organisation after winning the 2001 bid, in 1986 Barcelona got the games the same year it joined the European Economic Community and Japan entered the International Monetary Fund when securing the 1964 event. They also say the benefits for London are less clear, even without a worldwide recession, as various parts of the 2012 project lurch from financial crisis to crisis.
European loan
Last week Olympic organisers had to go cap in hand to the European Investment Bank for a £225 million loan to keep the athletes' village project on track. Hugh Robertson, shadow minister for sport and the Olympics, said: "The fact that the government has asked to take funding from the EIB shows a complete lack of private sector take-up, which is deeply worrying. This is the final nail in the coffin for any immediate private sector financing. The government is desperate to prevent this from becoming a wholly public-sector project." Lead contractors, Lend Lease, have failed to raise millions from the private sector. The £525 million Olympic stadium may have to be demolished after football clubs went cold in taking up residency. The East London games budget has tripled from £2.4 billion to £9.3 billion.
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