Olympics 'to pay for itself by 2021' - but people working from home has cost the economy £1bn
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
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
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.
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