Construction costs in the UK could rise by up to £4bn as a result of the Olympic Games, according to a report by The Guardian, quoting the Taxpayers Alliance.
New public buildings and academies, GP surgeries and new private housing could end up feeling the brunt of inflation, as public money is put into infrastructure for the 2012 games.
Construction for the Olympics has already come in at £5.3bn creating an influx of demand for the construction industry – which has pushed up inflation and driven prices for other contracts in the industry.
The Taxpayer's Alliance predicts a £1.5bn increase in private commercial building costs as a result of the Olympics along with a £921m increase in building for private housing and a £640m rise in the cost of public buildings across the nation.
Reported by Staff Writer