Blair 'has not ruled out London Olympic bid'

A bid to stage the 2012 Olympic Games in London has not been ruled out by Tony Blair, Downing Street said yesterday.

A spokesman denied a report that the Prime Minister was concerned that an Olympic bid by London would be too costly and would attract endless negative press coverage. "The Prime Minister has not expressed the views attributed to him," the spokesman said. "There is a rigorous process of assessment in place. It is wrong to say that a decision has been taken. We are not going to pre-empt that decision and it is important to take time to think things through properly."

The Cabinet is due to consider whether to support a London Olympic bid when Parliament returns after the Christmas break. Although there is widespread support for a London bid – with Mayor Ken Livingstone, the Tories, the Liberal Democrats and London Labour MPs among the enthusiasts – there are concerns, particularly regarding the cost.

Civil servants were said to have put the cost of staging the games at £5.2bn to £5.4bn, compared with an original estimate of £1.8bn. The bid alone is estimated to cost £13m. Some ministers are said to fear that the bid could fall foul of problems that have struck projects such as the Millennium Dome. The winner will be named in July 2005.