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Brown’s £16bn asset sale ‘will create black hole’
Nicholas Cecil, Deputy Political Editor12 Oct 2009
Gordon Brown's sell-off of public assets aimed at raising £16 billion was hit by a barrage of criticism today.
Experts warned the Government could get far less from the sale than hoped, creating another black hole in the public finances. There were concerns that selling off the Dartford crossing could make tolls permanent. Town hall chiefs also raised fears that libraries and cemeteries might have to be sold off.
Tory leader David Cameron said: “We must make sure that we get value for money. This is the Prime Minister who sold our gold reserves and if he had sold them later would have got four times the quantity. Let's not have any more incompetence from him.”
Mr Brown was adamant the £16 billion could be achieved. Speaking to business leaders in London, he outlined plans for selling the Tote, Dartford crossing, the Channel Tunnel rail link, the Student Loan book and a stake in uranium enrichment consortium Urenco.
Lib-Dem Treasury spokesman Vince Cable said the £16 billion savings had already been factored into public accounts: “The Government is in serious danger of finding another black hole in its finances.” On the Dartford crossing, he added: “The sell-off of the bridge will guarantee that tolls are here to stay.”
Council bosses, who will have to raise £11 billion, said they were not consulted. Councillor Margaret Eaton, chairwoman of the Local Government Association, said town halls could make a bigger profit if they held onto assets. “Does it include school playing fields, cemeteries or libraries?” she added.
Betting experts said the sale of the Tote could get less than £200 million, compared with the £400 million the Government was thought to want. The Tote's former chief executive John Heaton said: “They'd be lucky to get half that.”
Reader views (6)
It's a good thing Gordon Brown was always banging on about being "prudent". Where would we be if he was profligate - oh yes I forget, the MP's were, we had to be prudent and taxed to the hilt to pay for it all.
The Council house sell off - what happened to the money? The bargain basement gold sell of - what happened to the money?
- Patricia, LONDON, 13/10/2009 09:59
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Cameron is no doubt miffed as he wants to do the same thing but Gordon will get there first!
As to Cameron going on about Gold well hind-sight is a wonderful gift but I would have thought the gift he already has of Hind-Talk is enough for one person!!!
- Melvyn Windebank, Canvey Island, Essex, 12/10/2009 17:35
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Why not put 10 Downing Street up for sale? The Russians or Chinese would probably be in the market.
- Alex, London, 12/10/2009 14:18
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Rampant inflationary growth and excess debt is not what we want, destroying the £ in our pocket. Desperately clinging on to power in the vain hope that rising house prices will make people choose Labour is typically pathetic and good for no one.
- Nickspurs, London, 12/10/2009 13:30
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No, no and trice no! In the overall scale of things the monies raised will be minimal, and once the assets are gone they are gone forever. Privatisation of the railways was a disaster and the Dartford Crossing and Channel Tunnel would prove the same. Private industry exists to make as large a profit as the market can withstand. With no competition I could imagine the crossing costing £5 each way and goodness knows how much to go through the tunnel.
Another scenariois. The student loan book turns into a toxic asset and we (the tax payers) have to bail it out. If you are that determined Gordon Iran might give you the best price for the stake in Urenco!
- Michael, London, 12/10/2009 12:43
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Why doesn't he offer the entire country to the highest bidder and hopefully Robert Mugabe will win.
- R.F.York, Yorks, UK, 12/10/2009 11:50
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