Chancellor's Budget will blow £7m of taxpayer cash on Andy Burnham's Northern Olympics dream - even though Manchester tried and failed twice before

The chancellor is set to splash £7m in his first Budget on looking at how the Olympics could be brought to northern England.

John Healey will announce the hefty sum will be spent on a full feasibility study to look at winning the games for the north in the 2040s.

It will consider venues and transport links, which cities could share the games, how communities could benefit, how much it will all cost and whether any bid stands a chance.

Despite the success of the London 2012 Olympics, its economic benefit has been disputed.

Costing an estimated £8.9bn to put on according to the then coalition government, UK Trade and Investment (UKTI) estimated the games boosted the economy by £9.9bn. However, the figure has been disputed.

Previous bids for a Northern city - Manchester - to host the 1996 games – which went to Atlanta - and then the 2000 games – which went to Sydney – were unsuccessful.

Documents released by the National Archives in 2019 showed then Tory MP Damian Green commented it was 'obvious' why the 2000 bid failed during a ministerial post mortem.

At the time a policy advisor to PM John Major, he said:

'No one in their right mind would spend three weeks in Manchester rather than Sydney.'

The idea to try again was first floated by ministers earlier this year when UK Sport was asked to look at whether the North could win the Olympics following pressure from Northern politicians.

London Mayor Sadiq Khan has previously criticised plans to launch a northern bid to host the games, suggesting it would be a 'missed opportunity' not to launch a 'countrywide bid' including London.

But defending the idea John Healey said that 'The North hosting an event as big as this would be truly unforgettable', adding he was 'picking up the pace on our work to potentially bid for these prestigious games'.

Olympians and Paralympians including Dame Laura Kenny and Dame Sarah Storey have backed the idea of bringing the games to the North.

And Manchesterphile Andy Burnham is keen to capitalise on the economic boost hosting an Olympics can bring.

He said 'few things' could 'bring a country together quite like the Olympics' and the UK had already proved it could put on 'the greatest show on earth'.

'Now we want to explore how we can do it again, with the whole country behind it,' he told the BBC today.

'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,' he added.

News of the study's funding, announced ahead of Wednesday's Budget, was welcomed by the British Olympic Association, Paralympics GB and UK Sport, who will be involved in the research along with the government and Northern Mayors.

'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.'