London will bid to host the 2012 Olympic Games, the government has confirmed.

Tessa Jowell, the culture secretary, pledged that the government would "pull out all the stops" to bring the "greatest games on earth" to the capital.

Forum Response: Corporation of London

Michael Snyder, chairman of the Corporation of London's policy and resources committee, said: "I am delighted that the government has decided to back the Olympic bid.

"It would be a tremendous boost for London and the people who live and work here and could also provide a catalyst for lasting and widespread improvements to the capital's infrastructure and economy, not least Crossrail. London is one of the world's great cities and we should be aspiring to holding such an event.

"Having embarked on this, there must be total commitment and focus throughout from everybody involved to winning the bid and then ensuring the games is the success it should be. Without the essential clear leadership and direction required, the bid will not succeed.

"This bid can generate real excitement, not just in London, but across the country. This offers real hope that there could be an unstoppable momentum behind this campaign. If we can get it right, the rewards for London and Londoners will be enormous."

Forum Response: Institute of Directors

George Cox, director general of the IoD, told ePolitix.com: "It is good to see the problems over Pickett's Lock, Wembley and the Millennium Dome haven't deterred the Government from backing London's bid for the Games in 2012. This is a shot in the arm not only for London but the whole country.

"However, whilst we welcome London's bid, we think it would be unacceptable for the Olympics to be used as an excuse for further tax increases on London business."