Budget for Stratford velodrome rises to £100m

THE budget for the Olympic velodrome has risen by £20million to at least £100million because of construction complications, the Government will admit this week.

The official annual report into the Games to be published tomorrow by the Department of Culture, Media and Sport will also show rising costs at most other venues.

However, Olympics minister Tessa Jowell will say that the total project is on track to stay within its £9.3billion budget.

The velodrome has been affected by contamination. It is on the site of a 100-year-old tip and hundreds of tonnes of domestic and industrial waste have had to be removed.

The report will also show that the recession has cut the costs of raw construction materials by up to 15 per cent and that £25million should be saved from the two per cent cut in VAT.

Projected costs at other venues, including the £303million aquatics centre and the £520million main stadium, are also thought to be rising.