LONDON: Birmingham and the West Midlands region will benefit from a £778 million ($986 million) investment to stage the 2022 Commonwealth Games, the British government has confirmed.
The public funding for the 11-day mega event, which includes contingency, will be split approximately 75% / 25% between investment from the central government (£594 million) and Birmingham City Council and a number of its key partners (£184 million).
Birmingham 2022 will open up a wealth of opportunities, including business and trade, cultural engagement, volunteering, physical activity, jobs and skills, education and tourism. Over 1 million tickets will be made available for spectators from across the UK and around the world.
Additional commercial revenue will be raised by the Birmingham 2022 Organising Committee and Commonwealth Games Federation Partnerships through ticket sales, sponsorship, merchandising and the sale of broadcast rights.
Regular financial updates on the budget will be provided in the lead up to the Games. The Birmingham 2022 Organising Committee will also lay its accounts before the British Parliament in the usual manner for government arm’s length bodies.
Birmingham was awarded the rights to host the Games in December 2017. This announcement comes following a detailed budget review that took place after Birmingham was awarded host city rights.
With an estimated global audience of 1.5 billion, Birmingham 2022 offers a unique opportunity to harness the power of sport and cultural activities to boost the West Midlands region and to promote Global Britain across the Commonwealth as the country leaves the EU, the organisers have argued.
The evidence from previous host cities demonstrates the significant benefits of staging the Games. Gold Coast 2018 Games is expected to have delivered a £1.3 billion boost to the Queensland economy.
The economic benefits from the Games will include new employment and improved skills, investment and export opportunities and increased tourism.
The Games provides an important opportunity for local and regional suppliers and the Games partners are already working with businesses across the West Midlands to ensure that they make the most of this. On the Gold Coast, 84% of contracts were won by local or regional businesses and in Glasgow, 76% of the total value of contracts awarded went to Glaswegian or Scottish companies.
To ensure that local companies start to capitalise on the opportunities that the Birmingham 2022 Commonwealth Games present, briefings for hundreds of businesses have already taken place and more are planned in the run up to the Games.
Birmingham 2022 is being delivered in unprecedented circumstances, with a significantly truncated timescale, after the hosting rights were withdrawn from Durban in March 2017 and awarded to Birmingham in December 2017.
In addition to the budget of £778 million for staging the Games, there are a number of existing projects in the region that will deliver long-lasting benefits, which can also help to deliver the Games in the summer of 2022.
This includes the £496 million development of 1,400 new homes at Perry Barr which will serve as the Commonwealth Games Village during the Games in 2022, the delivery of which Birmingham City Council is responsible. The Perry Barr development will be supported by £165m of government funding from the Ministry of Housing, Communities and Local Government, as announced in October 2018.
The Commonwealth Games will act as a catalyst for the regeneration of the Perry Barr area with the development of a high-quality new residential neighbourhood. Post-Games, the development will be converted into more than 1,400 homes, the first phase of a long-term regeneration plan for Perry Barr and surrounding areas that will provide 5,000 new homes in total.
The Games will also benefit from investment in transport infrastructure including by Transport for West Midlands. This includes improvements at Perry Barr and University stations and new SPRINT rapid bus routes, subject to the necessary approvals. Passengers across the region will benefit from these proposals long after the Games end in 2022.
Breakdown of funding
Government investment £594 million
Birmingham City Council and partners investment £184 million
TOTAL £778 million
