Yorkshire businesses net just one per cent of Games contracts

Businesses in Yorkshire have only managed to secure one per cent of the £6bn worth of funding on offer to build the infrastructure for the Olympics despite Games bosses claiming the region could win the “lion’s share” of deals.

Organisers have repeatedly insisted the Olympics will benefit the whole of the country in a bid to win nationwide support for the London event, but a Yorkshire Post investigation has found that of the 1,500 contracts put out to tender by the Olympic Delivery Authority (ODA) only 43 were won by firms in the region – fewer than three per cent.

Of the £6.1bn of deals committed by the ODA – which has been responsible for building the Games infrastructure – Yorkshire’s contracts are worth £71m, just 1.16 per cent. In contrast, firms in London and the South East have secured nearly 1,000 contracts worth £4.3bn.

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The ODA estimates a further 50,000 supply chain opportunities have been generated, and yet only around 200 Yorkshire firms have benefited so far – fewer than half a per cent.

Charles Allen, head of the London 2012 Nations and Regions Group, said in 2009 that the Games was an “amazing opportunity for Yorkshire to take its lion’s share and thousands of new jobs will be created”.

Some firms said winning contracts has been a lifeline, but business leaders questioned claims of a widespread national legacy.

“It is disappointing that companies in our patch have not been able to benefit fully from the huge expenditure in infrastructure and services,” a spokesman for the Leeds, York and North Yorkshire chamber of commerce said. “In terms of long-term economic benefit for our region, we believe that as many companies have missed out on major contracts the impact will be limited.”

Yorkshire Gold, the regional Olympic body, said the figures for direct contracts are misleading as they do not take into account supply chain beneficiaries.