Dome project may wait 18 months

Work on the scheme to turn the Dome into a sports and music arena may not begin for at least a year and a half, soaking up yet more public money, it was reported today.

The Meridian Delta consortium, which intends to develop the Dome and build offices, homes and shops on the surrounding land, said it did not expect to win planning permission until May next year, according to the Financial Times.

The delay in resolving the empty structure's future is expected to increase the bill to the taxpayer, which has already forked out more than £600 million, by around £250,000 a month.

Meridian Delta, which includes property developers and American billionaire Philip Anschutz, hopes to sign a joint deal with the Government this May, but estimates it will take a further 12 months before planning permission is granted, the report said. Once Greenwich council has approved plans, mayor Ken Livingstone would also have to agree to them. Final planning permission may depend on a decision from the Government.

News of the anticipated delay came from Australia where developer Lend Lease, part of the Meridian Delta consortium, is listed on the Stock Exchange.

Shadow culture secretary Tim Yeo criticised the Government, saying: "It is extremely depressing that there will be over a year of uncertainty. It cost £20 million over the last year."

The plan to for a 20,000-seater concert and sports arena staging up to 150 events a year came after two years of searching for a buyer ended in failure. Ministers instead signed a provisional deal to lease the 190-acre site to the consortium for nothing, in exchange for a 25-year profit-sharing venture.

Lend Lease has just won a contract to develop the World Trade Center site in New York.