The key facts

  • Chancellor John Healey will allocate £7 million for a full feasibility study of a 'Northern Games' bid
  • The Games could be held in northern England in the 2040s; the UK last hosted the Olympics in London in 2012
  • Conservatives criticise the plan over costs and the tourist tax being introduced by Labour

£7 million to study the 'Northern Games'

British Chancellor John Healey will present his first Budget on Wednesday, in which, the BBC has learned, he will announce the allocation of £7 million to study the possibility of hosting the Olympic Games in northern England. The money will fund a full-scale feasibility study for a 'Northern Games' bid, which, if successful, could be held in the 2040s. The UK last hosted the Olympics in London in 2012.

Who is behind the idea and what will be studied

The idea was put forward by northern mayors and backed by a group of former Olympians, including Dame Laura Kenny and Dame Sarah Storey. In May, the government tasked UK Sport with conducting an initial assessment of the potential costs and benefits of a bid. Prime Minister Andy Burnham told the BBC that the Olympics 'few things unite the country like' and that the Games 'would open up opportunities for our cities and towns across the country'. The new study will be prepared by the government, UK Sport and the northern mayors together with the British Olympic Association and the Paralympic Association. It will examine the venues and transport links required, how cities could share hosting of the Games, and the benefits for communities, and above all — the cost and the bid's chances of success. The British Olympic Association, ParalympicsGB and UK Sport welcomed the continued support for studying a potential bid for the Games in the 2040s in a joint statement.

The dispute over the price and legacy of London 2012

Estimates for London 2012 differ: the Conservative–Liberal Democrat coalition government put the cost of hosting the Games at £8.9 billion in 2013, while a UK Trade and Investment report from the same year put the economic impact at £9.9 billion from new contracts, sales and foreign investment. According to the BBC, the Federation of Small Businesses and the National Institute of Economic and Social Research (NIESR)questioned that figure. Conservative shadow sports minister Louie French said that although the Games 'would likely bring a positive boost to the country', the cost of the proposals would require 'close scrutiny', and reproached the Chancellor for being ready to 'spend millions of pounds of taxpayers' money on warmed-up announcements from his predecessor' when he should first cut day-to-day spending. He also called it ironic that Labour's new tourist tax will create a price barrier for fanswishing to visit northern England for the Olympics. Healey himself said that the Olympic legacy 'lasts far longer than a summer of sport', and that the London 2012 experience was 'proof that we can host the world'.

Why it matters

The decision moves the idea of a northern bid from political rhetoric into the stage of official development with concrete funding — £7 million in the Budget. It affects residents of northern England, whose cities could claim venues and transport investment, as well as taxpayers, given that London 2012 cost, by the government's estimate, £8.9 billion. In practical terms, the working arrangements of the new study will become clear as early as Wednesday, and the final assessment of the cost and the bid's chances will determine whether a real bid for the 2040s Games goes ahead. Neither the specific candidate cities nor the final cost figure are yet known.

Tom Daley and other members of Team GB wave from a boat in Paris holding an enormous Union Jack flag aloft, with a Great Britain banner on purple cloth can be seen behind themImage source, PA Media
Image caption,

Team GB at the opening ceremony of the 2024 Olympic Games in Paris

John Healey looks seriously at the camera with the background of the image out of focus. Healey is seen from the shoulders up and is dressed in a blue suit, white shirt and red patterned tie.Image source, PA Media
Image caption,

Chancellor John Healey will present his first Budget on Wednesday

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