London taxpayers could be forced to pay off an additional £230m in Olympic debts.
The debt relates to land transferred from the London Development Agency to the Olympic Park Legacy Company.
The London Assembly is concerned that City Hall will be expected to repay the debt despite assurances that the Government would cover the entire sum.
A portion of the council tax paid by Londoners is ring-fenced to cover the capital’s cost of the Olympic games.
This precept was due to expire in 2017 but Assembly Members have raised concerns it could be extended to cover the transferred debt.
Next week the Assembly’s Budget and Performance Committee will question Sir Eddie Lister, the Mayor’s Chief of Staff, on what the debt means for City Hall and its budgets.
Committee chair John Biggs said AMs “have repeatedly highlighted the ongoing financial risks[ from the uncertainty around the Olympic land liabilities and our worst fears appear now to have been realised.”
“It looks as though the GLA now has to deal with an enormous long term debt arising from the Games land, at a time when its overall pot of money is reducing.”
Biggs said his Committee wanted to know “What will this debt will mean for London? Will funding need to be cut from other regeneration projects, and will Londoners be paying for the Olympics for even longer than originally thought?”
The Budget and Performance Committee meeting will take place at 10am on Wednesday, 23 November in Committee Room 5 at City Hall (The Queen’s Walk, London SE1).
