Olympics ‘to pay for itself by 2021′

| August 13, 2012 | 0 Comments

By
Daily Mail Reporter

16:15 EST, 12 August 2012


|

16:15 EST, 12 August 2012

People working from home during the Olympics have helped wipe £1billion off the UK economy this year, according to a think tank.

But the Centre for Economics and Business Research also estimated that the games could pay for itself by 2021 by helping London generate an extra £1.8billion a year by 2015.

It said that lost revenue from tourists and a drop in productivity from people either working from home or taking holidays during the games has cost the UK economy £1billion this year.
This would take the total price tag for the games –which had a revised budget of £10billion – to £11billion.

Closing ceremony: The CEBR said it expected the Olympics 'legacy' to kick in between 2015 and 2016, with London generating an extra £1.8billion a year

Closing ceremony: The CEBR said it expected the Olympics ‘legacy’ to kick in between 2015 and 2016, with London generating an extra £1.8billion a year

The latest estimates will fuel anger
from retailers and other businesses which have complained that key parts
of London have been turned into ‘ghost towns’ during the games.

Some of the City’s biggest firms have
also come under fire for allowing staff to work at home, with the
London Chamber of Commerce estimating that 1.5million people took
advantage of this option at some point during the Olympics.

Britain’s biggest bank HSBC revealed
that 40 per cent of its 8,500 staff based in Canary Wharf have been
working from home over the last two weeks.

But the CEBR argued that the boost in
the UK’s reputation around the world from a successfully run games
could also provide a fillip to businesses over the longer term.

Working from home: 40 per cent of HSBC's 8,500 staff based in Canary Wharf

Working from home: 40 per cent of HSBC’s 8,500 staff based in Canary Wharf

It added: ‘Provided that both national and local politicians are single
minded about focusing on growth, there is a very good chance that the
Olympic games could turn out to be the icing on the cake for East
London, making a critical difference to the area’s regeneration.’

It said it expected the Olympics ‘legacy’ to kick in between 2015 and 2016, with London generating an extra £1.8billion a year.

Here’s what other readers have said. Why not add your thoughts,
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The comments below have not been moderated.

“working from home” you mean watching the Olympics from home.

This working from home should have been assessed on a day by day basis and staff brought in when it was assessed not to be that bad. I work from home sometimes but work not be able to do it everyday for two weeks would drive me mad. I blame the companies for not managing there staff properly.

If anyone who has ever put on a party at home would know it always costs more than you could look at making. If it doesn’t it was probably a rubbish party so either way you don’t win. All that aside it is simply amazing how they come up with these numbers to feel better about the additional debt we have burdended our children with.

A lot of businesses will have gone bust before 2021, after this fiasco.

What a load of cobblers!!!
“a drop in productivity from people either working from home or taking holidays during the games has cost the UK economy £1billion this year”
We’ll have to see what the businesses who let their staff work at home have to say. No 2hr commute in the morning to work, I reckon people slept in and started work at the same time feeling a lot better for it.
And for those people on holiday during the Olympics, that will be the holiday they would have otherwise taken at a different point in the year!!!
Maybe London was a ghost town and maybe that was a good thing. If you have dedicated staff, they will work well where ever.

History seems to dictate otherwise and I dont see why London 2012 should be any different, look at the last games in Greece, I dont think the Greek people would agree with this article at all.
We didnt shame ourselves though, and a job well done, although wish the French had won it instead of us as spending 11 billion pounds during times like these just makes our debts go on longer and longer.

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