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16-billion-pound sale of state assets including the Channel Tunnel
rail link, to cut soaring debt caused by economic crisis. Brown,
facing a potential election wipeout next year at the hands of the
main opposition Conservatives, wants to halve Britain's deficit in
four years after it ballooned amid a deep recession. The planned
disposals, which also include the 33-per cent stake in European
uranium consortium URENCO, the Student Loan Company and the Tote
bookmakers, would raise the equivalent of 25.4 billion dollars or
17.2 billion euros. 'We plan a sale of assets to deal with our
debt issues and ... 16 billion (pounds) of assets will be sold
within the next two years,' Brown told economists gathered in central
London on Monday. 'We have listed a number of assets that we are
determined over the next period of time to put into the market place.
'That includes the student loan book, the Channel Tunnel rail
link, that includes URENCO— subject to security issues being
addressed—and that also includes the Tote, other facilities, and ( a)
property portfolio.' Britain's public finances have increased under
the weight of an expensive bailout of the troubled banking sector.
The public deficit is widely forecast to strike 175 billion pounds
this year as the nation's finances also buckle amid a fierce
recession, which has slashed taxation revenues. The Conservatives,
who are well ahead in the opinion polls with a general election due
by June, set out their plans last week for tackling Britain' s debt
problem. Brown is bidding to reclaim the initiative for his
governing Labour Party. His speech included a series of attacks on
Conservative policies, a taste of the electioneering flavour which
British politics is likely to adopt in the coming months. 'Our
deficit reduction plan is deepening, it is far-ranging, it takes
account of the issues,' Brown added on Monday. 'The difference
between it, and those of other parties... is that deficit reduction
can happen in a way that does not lead to a deterioration in
front-line public services, and make sure that we have the investment
that is necessary for the long-term growth of the economy,' he said.
Conservative leader David Cameron, reacting to Brown's
announcement, said that selling government assets was a good idea.
'Obviously we do need to do this but we must make sure, as every
family knows, if you sell something it can help in the short term but
it does not help you live within your spending in the long-term.
'We have still got to get to grips with public spending, get to grips
with the deficit. We must make sure we get good value for money.'
In a twin-pronged attack on Britain's recession, the Bank of England
has slashed British interest rates to a record low of 0.5 per cent
and launched a radical quantitative easing (QE) programme to boost
lending. The British central bank will keep its key lending rate
at 0.50 per cent until at least 2011 as the economy recovers, an
independent economics consultancy forecast on Monday.
