Britain strikes gold

The capital beat favourites Paris in the closest of finishes, winning the fourth and final vote of International Olympic Committee (IOC) delegates in Singapore by 54 votes to 50.

Jubilant officials said the games would provide a huge boost to the British economy, which would be felt throughout the country.

Landing the world's greatest sporting spectacle is worth billions in tourism, investment and sponsorship opportunities.

The victory means London will host the world's premier sporting event in seven years' time with a specially-built stadium and village rising from what is now an urban wasteland in the east of the city.

Regional development agencies have already started working on plans to reap the benefits the Olympics will deliver.

One NorthEast and Yorkshire Forward believe the games will provide an unprecedented opportunity for businesses.

The North-East already boasts companies with the expertise needed for the huge construction projects that will transform London into an Olympic city.

Cleveland Bridge, based in Darlington, was one of the major contractors on the new Wembley Stadium. The company built the iconic Wembley arch that can be seen across the capital.

Research undertaken for regional development chiefs says the North-East and Yorkshire regions could cash in to the tune of more than £1.2bn.

St James' Park, in Newcastle, has already been earmarked to host Olympic football.

Officials are also hoping the region's sporting infrastructure will encourage Olympic squads to set up training camps here.

And the excitement surrounding the games could help efforts to encourage more children into sport.

Judith Rasmussen, northern regional director of Sport England, said: "The whole inspirational feeling around the Olympic Games will have a huge impact on our young people. We now have to try to get as many performers from this region as we can into the 2012 team.

"In a wider sense, the high profile given to sport will help Sport England in its continuing campaign to encourage more people in the region to take more exercise by building in more physical activities to their daily lives."

Jarrow-born Olympic silver medallist Steve Cram, chairman of the English Institute for Sport, said: "This is the greatest opportunity British sport has ever been presented with."

Paralympian Dame Tanni Grey Thompson, from Redcar, east Cleveland, said: "It's just absolutely amazing. I'm sure the Games are going to be absolutely fantastic. A lot of people came up to us and said they had been inspired by our presentation and our vision for the Games."

North-East athlete and Sydney gold medallist Jonathan Edwards, who was with the British Olympic delegation in Singapore, said: "We need to get the investment in sport in place to make sure that everyone gets the chance to become Olympic champion."

Swimmer Don Bland, 73, from Houghton-le-Spring, near Sunderland, competed as a 17-year-old in the 1948 London Games, finishing seventh in the finals of the 1,500 metres freestyle.

Mr Bland, a member of Chester-le-Street Amateur Swimming Club, in County Durham, said: "People will understand what an enjoyment sport is and what it is to be involved in it. I think it is a marvellous achievement that we have put together a successful bid."

Mr Bland, who still swims four times a week, is hoping he will be able to got to see the games in London in 2012. "I'll be there on the seventh day of the swimming to see the finals of my event," he said.

London's victory was hailed as a remarkable achievement by Prime Minister Tony Blair. "This is a momentous day for London," he said.

Britain had been in second place behind France until the final weeks of campaigning to win the votes of Olympic Committee members.

The Queen, in a message to bid chairman Sebastian Coe, said: "I send my warmest congratulations to you and every member of the London 2012 team for winning the bid for the UK. It's a really outstanding achievement to beat such a highly competitive field."

England football captain David Beckham expressed his delight while Prince William sent a message of congratulations from New Zealand, where he is touring, saying he was looking forward to "a fantastic Olympic Games".

After the IOC decision the mayor of Paris, Bertrand Delanoe, criticised the London bid team for continuing individual lobbying of members until the last minute.

"I didn't think that was what it was about, myself. I thought you needed the right bid dossier, the right spirit," he said, adding: "It is fair play that made us lose."

London and Paris made it to the final round of voting after Moscow, New York and Madrid were eliminated in earlier rounds.

London led in all but one round of the voting. In the first round London received 22 votes, Paris 21, Madrid 20, New York 19, and Moscow 15. The second round saw New York eliminated with 16 votes while Madrid received 32, London 27, and Paris 25 votes. Madrid was knocked out in the third round with 31 votes, compared with London's 39 and 33 for Paris.

The triumphant bid came following a slick and forceful final presentation earlier in which Lord Coe promised a Games where "magic happens".

"This is our moment," he added.