§ Lord Jopling
asked Her Majesty's Government:
Further to the Written Answer by the Lord McIntosh of Haringey on 29 January (WA 56), whether a newly elected Mayor of London could under the Greater London Authority Act 1999, with or without the support of the Greater London Authority, decline to levy a council tax to raise London's contribution to staging the 2012 Olympic Games; and what would happen to the bid in those circumstances, or to the financing of the games following a successful bid. [HL2306]17WA
§ Lord McIntosh of Haringey
In the memorandum of understanding between the Government and the Mayor of London, presented to Parliament in June 2003 as Command Paper Cm 5867, the Mayor has agreed that, subject to the Greater London Authority's decision-making processes, a council tax precept, beginning no earlier than 2006–07, would be made to support the cost of staging the games.
As part of the bid, both the Mayor and the Government will he required to sign guarantees confirming the amounts to be funded by council tax and other funding sources, and pledging to take all necessary measures to ensure that London will fulfil its obligations under the host city contract, which will be signed with the International Olympic Committee if London's bid is successful. Under the GLA Act 1999, the Mayor and London Assembly have a duty to secure a financially balanced budget and the Mayor must levy the council tax precept that is necessary to fund that budget.