Government to announce a full feasibility study on a “Northern Games” in the 2040s, with Prime Minister Andy Burnham saying the country should feel the excitement again in its own towns and communities.

A £7 million fund to explore how the Olympic Games could be brought to northern England will be announced in Chancellor John Healey’s first Budget on Wednesday (October 28), the BBC has reported.

The money will pay for a full feasibility study into a possible bid for a “Northern Games”, which could see the Olympics held in the North in the 2040s.

It would not be the first time the idea of taking a major global athletics event outside London has been floated. When the government abandoned plans to stage the 2005 World Athletics Championships at Picketts Lock in north London in 2001, the then sports minister, Richard Caborn, suggested Sheffield as an alternative host. World Athletics president Lamine Diack, however, had no interest, as Sheffield did not have the glamour of the capital.

There have also been failed Olympic bids from the English regions in the past. Birmingham lost out to Barcelona in the race to host the 1992 Games, while Manchester bid unsuccessfully for both the 1996 and 2000 Olympics, which went to Atlanta and Sydney. Manchester went on to stage the 2002 Commonwealth Games and Birmingham hosted the Commonwealth Games in 2022.

According to the BBC, Prime Minister Andy Burnham said: “Few things bring a country together quite like the Olympics. 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.

“The Games would unlock opportunity across our towns and cities for the whole country. From north to south, it would be something everyone could get behind and be proud of.

“We know we can put on the greatest show on earth. Now we want to explore how we can do it again, with the whole country behind it.”

The idea was put forward by Northern Mayors and backed by a group of former Olympians including Dame Laura Kenny and Dame Sarah Storey. In May, the government asked UK Sport to carry out an initial assessment of the possible costs and benefits of a bid, and the full feasibility study is the next step.

The study will be carried out by the government, UK Sport and the Northern Mayors, with the involvement of the British Olympic Association and the British Paralympic Association. It will look at the venues and transport links that would be required, how different cities could share the Games and how communities could benefit. It will also examine how much a bid would cost and assess its chances of success.

Healey said: “Olympic legacy lasts way beyond the celebration of sport over the summer. The North hosting an event as big as this would be truly unforgettable.

“Britain’s experience of London 2012 is proof we can host the world. I’m picking up the pace on our work to potentially bid for these prestigious games. It will lift communities, create opportunities and give the UK a huge boost.”

London was the last UK city to host the Olympics, in 2012. The then coalition government estimated in 2013 that staging the Games had cost £8.9bn, while a UK Trade and Investment report that year estimated the Games had boosted the economy by £9.9bn. That figure was questioned by some, including the Federation of Small Businesses and the National Institute of Economic and Social Research.

Conservative shadow sports minister Louie French said hosting an Olympic Games would “likely provide a positive boost for the country”, but the cost of the proposals would require “careful scrutiny”. He said the chancellor should use the Budget to bring down everyday costs rather than “spend millions in taxpayer cash on reheated announcements made by his predecessor”.

French added: “The irony is that Labour’s new tourism tax will create a cost barrier for sports fans wanting to visit the North of England for an Olympic Games.”

The British Olympic Association, ParalympicsGB and UK Sport welcomed the funding in a joint statement. “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.

“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.”