The Games - 50 million cost increase!
The announcement that the council is ploughing on with the Commonwealth Games despite the cost, is very concerning, not just to the general public, but also some Councillors. This week reports in the Birmingham Post say that the city wants to introduce a Tourist Tax to help pay for the Games.
Speaking at the February 14th Resources Overview and Scrutiny Committee, Cllr Paul Tilsley (Lib Dem) said that he was concerned about many of the funding arrangements surrounding the Games, particularly plans to borrow £50 million to help finance the event.
Yep, that's £50m from a Council that's already been warned not to dip into reserves by the Kerslake bods (AKA The Tory Govt watchdog). The article reckons that BCC and local taxpayers will be "a figure it will be paying off for the next 40 years. !"
Resources Overview and Scrutiny Committee, Clive Heaphy, Chief Finance Officer, and Guy Olivant, Major Developments Lead, admitted that the council would need to add to its debt in order to finance part of the Games.! This is at a time when the Council continues to make service cutbacks. But they seem to not mind paying a huge cost for a games that as far as I know , not one run of the mill Brummie was canvased about wanting. It was just decided by the council officialdom and presumably the Business community.
Going on to the comments on the Posts stories about the games , most of the supporters seem to be from the Business community.
The article continues
Birmingham City Council and its partners are expected to pay for 25 per cent of the Games costs - approximately £145 million - with central government set to provide the remainder of the funding.
This £145 million will be made up of a combination of contributors, with the West Midlands Combined Authority expected to stump up around £25 million, while the Greater Birmingham and Solihull Local Enterprise Partnership will be providing around £20 million.
A further £19 million will be coming from corporate capital resources, meaning the remainder - a potential £80 million - will need to come from the city council.
For the article click here
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