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Business bosses praise £778m Commonwealth Games budget

Business bosses have praised the announcement of the £778million budget for the Commonwealth Games 2022 in Birmingham saying it will help create many jobs.

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Noel Muscutt, partner at Black Country commercial property agents Bulleys, said the Commonwealth Games would create opportunities across the property spectrum.

“Contractors tasked with delivering the Commonwealth Games will need both industrial and office space and there will be considerable job creation.

“The Games can act as a catalyst to the region’s economic prosperity as a whole and we at Bulleys very welcome this announcement.”

Meanwhile Birmingham property investor Paul Bassi, from Hagley, near Stourbridge, hailed the announcement as “great news”.

“This event will play a major part in re-establishing Birmingham as a global city and the Commonwealth Games will be hugely beneficial to the regional economy,” he said.

Paul Bassi is chief executive of Real Estate Investors plc.

Birmingham 2022's chief executive Ian Reid said: “Having our budget confirmed is a key milestone for us and we can now look forward to delivering a fantastic Games for the people of Birmingham, the West Midlands and the country.”

Reid was the chief financial officer the last time the UK staged the Commonwealth Games in 2014 when Glasgow had £372million of public funding to spend, although that sum was just to meet the event’s operational costs.

Its budget was also topped up by another £100million in broadcast rights, sponsorship and ticket sales, and Birmingham will be confident of beating that figure and keeping its operational spend significantly below the £600million Australia’s Gold Coast spent on the Games in 2018.

In fact, the Commonwealth Games Federation is keen to highlight that Birmingham 2022 should cost the British public £200million less than Gold Coast 2018 cost Australians when operational and capital costs are considered.

Commonwealth Games Federation president Dame Louise Martin said: “We are pleased to have confirmation of the public investment in Birmingham 2022, which reinforces the Commonwealth Games’ position as a cost-efficient multi-sport event focused on delivering numerous long-term benefits for the host city.

“An important element of the budget detail is the significant decrease in direct Games delivery costs compared to Gold Coast 2018.”

The key to this decrease is the fact Birmingham 2022 will mainly be using existing venues, such as Arena Birmingham, the National Exhibition Centre and Villa Park in Birmingham, and Leamington Spa’s Victoria Park for bowls and London’s Lee Valley VeloPark for track cycling.

The pool in Sandwell is new but it is meeting a clear need for better sports facilities in the area, while the athletes’ village in Perry Barr is part of an already-announced £496million investment in 1,400 new homes.

Alexander Stadium’s expansion, however, is more risky, as it will need to attract much bigger events than the current facility does to meet its increased costs after 2022, but Birmingham City Council is confident the planned 18,000-seat venue can become the true home of British athletics and provide a much better site for locals.

“The level of investment coming into the city, and the wider West Midlands as a result of our decision to successfully bid for the right to host the Commonwealth Games, is huge,” said council leader Ian Ward.

“The Games are undoubtedly a catalyst, bringing forward many regeneration and infrastructure schemes, so they are delivered much quicker than we could have done so otherwise.”

West Midlands Mayor Andy Street added: “The Games will open a wealth of new opportunities for people who live and work here, will contribute millions to the local economy, and provide a global stage for us to introduce a rejuvenated, refreshed West Midlands to the world.”