The hidden costs of the 2012 Olympics

Those of us who now doubt the wisdom of London staging the 2012 Games have further ammunition in the shape of research conducted for The Taxpayers Alliance (.pdf format).

The Alliance reasons that the extra demand for construction work arising from the Games will lead to an increase in the prices that industry charges. It expects a "construction inflation" rate of 1.25 per cent a year.

Over the years up to 2012 this will impose the following extra costs:

• £1.5 billion increase in the cost of private commercial buildings, new office and retail space.
• £921 million increase in the cost of building private housing, potentially adding to house price inflation in the capital.
• £640 million increase in the cost of public buildings, potentially affecting plans for new schools, NHS units and GP surgeries.
• £444 million increase in the cost of infrastructure work, without factoring in large potential projects such as Crossrail.
• £237 million increase in the cost of building public housing during a critical period when projects for new social housing in London will be agreed.
• £161 million increase in the cost of private industrial buildings.
  

The total comes to something like £4bn.

Thanks to Andy Mayer.