Olympics ‘to give economy short-term boost’

The UK economy will get a boost from the Olympics – but it will only be a short-term one.

Such a view was expressed by chief economist at the Institute for Public Policy Research Tony Dolphin "I think it will have a small, positive impact but only a small one and only in the current quarter's data. I don't think it will have a lasting impact in terms of growth once the Games are finished."

Mr Dolphin said there are underlying problems that need more government action in response through new investment in infrastructure such as roads and railways.

Summing up a key problem holding back growth in the current gloomy climate, he remarked: "It is clear from the figures that private sector households and businesses just lack the confidence that they need to spend more money."

He argued that extra government spending on infrastructure projects will give the private sector more confidence to spend money.

The benefits of the Olympics will include the receipts from ticket sales, a figure that will add hundreds of millions of pounds to gross domestic product, with the cash spent by visitors to London and other parts of the UK also helping.

Many people in debt could find the best solution for them is to seek the best advice and help available, rather than hoping the economy gains a new boost from the Olympics that may help them in the future.

This could vary from a debt management plan to more comprehensive action, like an individual voluntary agreement.

One way the UK is seeking to gain in the longer run from hosting the Olympics is through a business and investment conference being held in London to coincide with the Games.

Prime minister David Cameron has addressed delegates at the event, seeking to persuade them to invest more in the UK.