Charities angry at failure to repay £425m lost to Olympics budget

(Guardian) More than £400m of lottery money diverted from good causes to pay for the Olympics is unlikely to be repaid for decades, if at all, charities fear.

In 2007 the Labour government diverted £425m from the Big Lottery Fund, which helps small community groups and charities across the UK, to pay for infrastructure on the Olympic Park. A pledge was given that the charities would have the cash returned.

But a memorandum of understanding, obtained under the Freedom of Information Act, reveals that a series of agreements has been drawn up to decide who gets first claim on cash from Olympic asset sales – and that charities are not at the front of the queue.

A body representing the good causes that have lost out has branded this a "scandal" and is questioning why none of the political parties is pressing for the money to be returned urgently.

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