Healey to fund £7m feasibility study on 'Northern Games' in first Budget

Chancellor John Healey will announce a £7m fund in his first Budget on Wednesday to finance a full feasibility study into staging an Olympics across northern England, the BBC has learned. If the study finds a bid viable, it could lead to a campaign to host the Games in the North in the 2040s.

The last time the UK hosted the Olympic Games was London 2012. In May the government asked UK Sport to carry out an initial assessment of the idea, examining possible costs and benefits of a bid to stage the Olympics across the North. The Conservative-Lib Dem coalition government said in 2013 it estimated hosting in London had cost £8.9bn. A 2013 report by UK Trade and Investment, since replaced by the Department for International Trade, estimated a £9.9bn boost to the economy, although that figure was queried by the Federation of Small Businesses and the National Institute of Economic and Social Research (NIESR).

Prime Minister Andy Burnham told the BBC: "Few things bring a country together quite like the Olympics. I want people to feel that sense of excitement again, and to experience it in their own towns and communities, not just watch it on the telly. "The Games would unlock opportunity across our towns and cities for the whole country. From north to south, it would be something everyone could get behind and be proud of. "We know we can put on the greatest show on earth. Now we want to explore how we can do it again, with the whole country behind it."

The full feasibility report will examine the kinds of venues and transport links required, how different cities could share the Games, how communities could benefit, and will assess likely costs and the chances of a successful bid. That closer analysis is intended to move beyond the initial assessment carried out by UK Sport.

The study will be undertaken by government alongside UK Sport, the Northern Mayors and include the British Olympic and Paralympic associations. Healey said: "Olympic legacy lasts way beyond the celebration of sport over the summer. The North hosting an event as big as this would be truly unforgettable. "Britain's experience of London 2012 is proof we can host the world. I'm picking up the pace on our work to potentially bid for these prestigious games. It will lift communities, create opportunities and give the UK a huge boost."

News of the funding for the study was welcomed by the British Olympic Association, ParalympicsGB and UK Sport. "We welcome the government's continued support for exploring the potential of a future bid for the Olympic and Paralympic Games in the UK in the 2040s," they said in a joint statement. "Building on the success and legacy of London 2012, we look forward to working in partnership to explore this exciting opportunity and the benefits it could deliver for the nation, and for the global Olympic and Paralympic movements."

Chancellor John Healey will present his first Budget on Wednesday, when the government will announce the move to commission the full feasibility study for a potential Northern Olympic bid.