Lotto cash concern over Olympics

The cost of London's Olympic Park has risen by £900m

Concerns have been raised that community projects in Scotland could be put at risk because of the rising cost of the London 2012 Olympics.

The director of the Big Lottery Fund in Scotland said using more lottery cash than was intended would have a direct impact on groups in Scotland.

The organisation has said good causes could lose up to £51m because of a funding shortfall.

The government said the benefits of the Olympics would far outstrip the costs.

The price of London's Olympic Park has increased by £900m and extra costs such as additional security measures are also escalating.

The Lottery must not be used as a giant Olympics slush fund Jo Swinson Liberal Democrats

The government has admitted it may have to dip into National Lottery funds to plug the shortfall.

Dharmendra Kanani, director of the Big Lottery Fund in Scotland, said the fund wholeheartedly supported the Olympics and accepted that some lottery cash would help pay for it.

But he said taking even more money would have a damaging effect on the many community groups, sports and charities that rely on lottery funding.

The Scottish National Party's spokesman for sport, culture and media, Stewart Maxwell said the cost of the games was "spiralling out of control".

"It is unacceptable that thousands of community projects in Scotland, including those involving grassroots sports groups, face collapse because of the soaring cost of the London Olympics," he said.

"Scotland was assured by the Labour Government that the London Olympics would not affect Lottery spending in Scotland.

Ms Jowell has said public sector funding for the games will increase

"However since they gave that promise we have learned that the estimated costs of the Olympics may have more than doubled from £2.4bn to £5bn."

The west of Scotland MSP pointed out that the cash problems had arisen just as Scotland was bidding for the 2014 Commonwealth Games.

Culture Secretary Tessa Jowell has warned that public sector funding for the Olympics would have to increase from an originally estimated £2.37bn to about £3.27bn.

Mr Maxwell called on the Westminster and Holyrood administrations to pledge that no more good causes were "raided" in Scotland.

A spokesman for the Department of Media, Culture and Sport said the games, along with the paralympics, would provide a "once in a lifetime opportunity".

'Clear risk'

"We accept that using National Lottery funding for London 2012 represents a loss of income to the non-Olympic good causes," he said.

"However, we remain convinced that the benefits the games will bring will far outstrip any effect created by such a diversion."

He added that the games would regenerate one of the most deprived areas in Britain, inspire youngsters to take up sport and create world class facilities for everyone to use.

But Liberal Democrat Scottish spokeswoman at Westminster, Jo Swinson MP, said: "There is a clear risk that other good causes could lose out on vital lottery money.

"There must be a new, independently audited Olympics budget, with full parliamentary oversight.

"The lottery must not be used as a giant Olympics slush fund."