Mayor spent £500,000 of public money to save New Year firework show

 
New Year Fireworks over Thames.
Dominic Lipinski/PA Wire
Christina Reinwald11 April 2013

London’s New Year’s Eve fireworks display was almost cancelled after a £500,000 sponsorship deal fell through just six weeks before the event.

However, Mayor Boris Johnson decided to go ahead with it, sending the cost to Londoners soaring from £1.5 million to £2 million.

Mr Johnson has revealed that the main commercial sponsor for the show withdrew its support and that the event’s unnamed organisers refused to bear the extra cost.

City Hall had to decide whether to cancel the event or take over the cost and a mayoral decision released this week — three months late — reveals that Mr Johnson decided that the show would go ahead.

The display — which lasted 11 minutes and featured 12,500 fireworks — was seen by a 250,000 people who lined the banks of the Thames, with two thirds of visitors from outside London. Caroline Pidgeon, a Lib-Dem London Assembly member, said: “The Mayor needs to explain why he initially signed a decision which allowed a contractor who secured a public contract to turn around at the eleventh hour and demand £500,000 more.

“The Mayor also needs to explain why these appalling decisions have been kept secret from Londoners for so long.”

A spokesman for the Mayor said: “Unfortunately, the proposed arrangements fell through late on in the process, a situation that became clear only at a late stage. With a £500,000 shortfall, the GLA sought revised bids to stage the event.

“Following the new process, a different company was contracted to deliver this important event, which they did with great success. As is standard, details were published when final costs had been accounted for.”

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