Security bill for London's 2012 Olympics to hit £1.5bn - triple the original estimate

The London Olympics budget will break through the £10bn barrier because officials have "vastly underestimated" the cost of protecting the event from terrorists, The Independent on Sunday has learned.

Security costs for the 2012 Games are now likely to reach £1.5bn – nearly three times the original estimate, a senior official involved in planning the event said.

The Army is to be drafted in to help protect athletes and hundreds of thousands of spectators from an atrocity, the official revealed. Military helicopters will patrol overhead and jets will be on standby to intercept any suspect private plane heading for the main Olympic stadium in Stratford, east London. Under Treasury rules, the Ministry of Defence would charge the Olympic authorities for such a deployment.

The security operation is expected to be largest in peacetime Britain, with the two-week event classed in Whitehall as a major terrorist target. Yet detailed planning for policing and security has barely started.

The total bill for the Games is now £9.3bn, but that is based on security costs of £838m. If the security bill reaches £1.5bn, it would send the budget beyond £10bn, despite recent pledges by the Olympics minister Tessa Jowell and London Mayor Boris Johnson that the final limit would be £9.3bn.

But insiders said a price could not be put on preventing a large-scale terrorist attack on the main Olympic site or in London's parks, where thousands will watch the events on giant TV screens. "It will cost whatever it takes to ensure terrorism does not once again try to rob London of celebrating the 2012 Games," a source said.

The London bombings of 7 July 2005 took place the day after the capital celebrated winning the 2012 bid.

The security bill for staging the Games was originally £600m, but this was based on the costs of the 2000 Sydney Olympics, before the 9/11 attacks of 2001 and the London bombings.

The insider last night said security planning was "basically starting from scratch. There are no detailed plans yet," the source said, "but of course it will cost far more, around £1.5bn."

The fresh revelations come as London launched its four-year Cultural Olympiad this weekend, with the raising of the Olympic and Paralympic flags over the capital.

Balancing security concerns with ensuring spectators can enjoy a friendly and open atmosphere – in contrast to Beijing's rigid controls – is proving to be the greatest headache for organisers, alongside transport. Policing the Olympic park is not seen as too problematic because spectators and visitors can be contained within the precinct. But officials want the experience of 2012 to be open and shared by all Londoners, with street parties similar to those in Sydney at the turn of the millennium. Giant video screens will be placed in Hyde Park and at other sites where events will take place.

In addition to police officers from Scotland Yard and other forces, tens of thousands of volunteers will be needed to check bags and tickets. Taking on volunteers as young as 14 has been discussed, although this could cause controversy.

Unmanned military planes, as used to monitor the Taliban in Afghanistan, could be deployed to monitor suspected terrorist aircraft.

Assistant Commissioner Tarique Ghaffur was given responsibility for overseeing the Metropolitan Police's security arrangements for 2012, until he protested that Commissioner Sir Ian Blair wanted to strip him of the remit. He is now suspended pending his case for racial discrimination.

The transport network is likely to carry 240,000 passengers an hour during the Games. Extra officers will be needed to identify suspected bombers, and all stadiums will be built with special blast-proof material, including shatter-proof glass.

Officials from the Met, the Cabinet Office and the Home Office have been meeting regularly to discuss the operation. If organisers are to keep to the promise made by Ms Jowell and Mr Johnson not to run over budget, cuts will have to be made elsewhere, such as in the construction of stadiums and the Olympic village to house 17,000 athletes, and in the funding of the 2012 "legacy", which is intended to promote grassroots sport.

Sport England has already seen its budget cut by £395m.

A Home Office spokesman said: "The Government and its partners in security are committed to the safety and security of the London 2012 Olympics, and a funding envelope of £600m has been agreed.

"An integrated, costed security plan is being produced, for ministerial agreement by the end of the year. This will cover strategic options for a range of security measures, including fraud and financial crime prevention and protection, counter-terrorism, identity assurance and personal protection."

Sport meets culture as London is turned into a giant adventure playground

Abseiling down the six-metre-high "washing machine" I was tired, sore and ashamed. My embarrassment at my lack of fitness as I struggled over this one obstacle was matched by awe at the 1,000 competitors for whom this was just the first of many they will tackle in this weekend's Rat Race 2008.

The event coincides with the start of the Cultural Olympiad for the 2012 Games, which saw Lord Coe, Dame Kelly Holmes and Jonathan Edwards, among others, take part in the Turner Prize-winning artist Martin Creed's 'Work No 850' on Friday. His sculptural installation consists of a runner sprinting the 86 metres of Tate Britain's Duveen Galleries every 30 seconds.

London will be turned into a giant urban adventure playground with participants racing around the capital climbing, free-running, abseiling, kayaking and mountain biking their way over a 50km course. Buildings, streets, shops, offices and rivers all feature in the event, which takes in 14 of London's 33 boroughs. Competitors also have to solve a series of mental puzzles along the way to reach checkpoints.

Around the country, more than 600 events, ranging from the highbrow to the eye-catching and plain strange, will take place over this weekend's cultural launch for 2012.

Paul Bignell

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