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The Government is reportedly hoping to raise around £16 billion worth of funds by selling a number of assets, including a selection of London offices and Whitehall properties.

In an article by The Times, critics spoke of the move as a "national car boot sale" and warned against potential difficulties. Among the complications is the possibility that asset sales would raise much less than they would have done two years ago.

A total of £13 billion is expected for the sale of property. Most of this is said to be for land, office buildings and council houses. £2 billion of this figure is also on the cards from central government property, which The Times report is reserved for a number of unidentified Whitehall buildings.

While the commercial property market continues to struggle however, the question remains as to whether the full £13 billion will be reached.

Other assets up for sale include the Tote, the Dartford Crossing, and the Channel Tunnel rail link.

Philip Shaw, the chief economist at Investec, said: "If the Government managed to sell these assets the £16 billion would represent a significant slug of the deficit. But, even though it would pay off about 10 per cent of it, it would by no means solve all their problems."

Published by Jo on Tuesday, 13 October 2009 at 4:41 PM