Record disposal of public assets attacked as '˜fire sale'

A record-breaking amount of money was raised through sell-offs last year, new analysis by the Press Association has revealed.

Unite general secretary Len McCluskey described the findings as evidence of the government’s “categorical refusal to consider that investment, not cuts, is the way to secure the economy”.

He added: “Ministers suggesting that everything is better off in private hands simply insult the public’s intelligence. Tell that to fed-up customers who have had to endure the twin abuses of higher costs and poorer service when big business gets its hands on public services like the railways.

“This fire sale is aimed at plugging the financial holes in Chancellor George Osborne’s illiterate economic policy characterised by faltering growth and increased borrowing costs.

The PA’s findings were welcomed by Jonathan Isaby, chief executive of the TaxPayers’ Alliance.

“With the nation’s books far from balanced and the Government spending way beyond its means, ministers are absolutely right to have identified assets to be sold off, not least because some of them will have been costing a fair amount to maintain,” he said.

“The state should continuously be examining whether there is value for taxpayers in retaining its existing portfolio of assets. Where shares, buildings or land no longer need to be in government hands, their sale can help ease the burden on already hard-pressed taxpayers.”

TUC general secretary Frances O’Grady said the figures showed that taxpayers were being short-changed.

“Allowing private investors to hoover up public assets has nothing to do with providing economic security,” she said.

“Instead of boasting about selling the family silver, ministers should be explaining why time after time they get such a bad deal.

“Eurostar and Royal Mail were both sold for well under value. Flogging them off for short-term political gain is short-changing taxpayers.

“The Government has failed to come up with any evidence to back the notion that ‘private companies know best’ which is hardly surprising when evidence from around the world suggests the opposite.”