It's the Great British Sell Off: Osborne reveals plan to raise £23BILLION from government assets

  • Government will raise more than £23billion with raft of sell-offs this year
  • Chancellor vows to privatise Eurostar stake and the student loan book
  • He will also push ahead with plan to sell off shares in bailed out Lloyds
  • Mr Osborne reveals he had already ordered departments to find savings 

By Tom McTague, Deputy Political Editor for MailOnline

Published: | Updated:

George Osborne signalled the start of the biggest ever sell-off of public assets in a speech to the CBI business conference last night.

The Chancellor said the government would raise more than £23billion this year – a new record – by privatising stakes in Eurostar, Lloyds and the student loan book.

He also revealed that Government departments have already been ordered to start finding extra savings ahead of the emergency budget in July, as he bids to wipe out the government deficit within just two years.

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Chancellor of the Exchequer George Osborne signalled the start of the biggest ever sell-off of public assets in a speech to the CBI business conference last night (pictured at the meeting)

Chancellor of the Exchequer George Osborne signalled the start of the biggest ever sell-off of public assets in a speech to the CBI business conference last night (pictured at the meeting)

The Chancellor, making his first speech since the Tories were re-elected with a majority earlier this month, said getting Britain back in the black would be a major plank of his July 8 budget.

Mr Osborne will use the cash raised from the government sell offs to pay down the government's £1.5trillion debt.

But he said making Britain more productive was the key for making families wealthier by driving up wages.

Mr Osborne said: 'Improving the productivity of our country is the route to raising standards of living for everyone in this country.' 

The Chancellor said the government would raise more than £23billion this year ¿ a new record ¿ by privatising stakes in Eurostar  (pictured), Lloyds and the student loan book

The Chancellor said the government would raise more than £23billion this year – a new record – by privatising stakes in Eurostar  (pictured), Lloyds and the student loan book

WHAT WILL BE SOLD OFF? 

Chancellor George Osborne announced he will create a new government-owned company, UK Government Investments as part of plans for the biggest ever sale of state-owned assets this year.

The plan to raise more than £23billion for the first time includes selling shares in:

  • Lloyds Banking Group
  • UK Asset Resolution assets
  • Eurostar
  • The pre-2012 income contingent repayment student loan book

He revealed that he would publish a 'Productivity Plan' before the budget to help 'make Britain work better', adding: 'Our future prosperity depends on it.'

He said the level of skills in Britain was 'unacceptable' and far below Germany and the US.

'We're one of only three OECD countries where the skills of our 16-24 year olds are no better than our 55-65 year olds,' he said.

Taking the fight to Labour, which has opposed the Government's education reforms, Mr Osborne said: 'What an indictment of those vested interests who still oppose the changes we're making to raise standards in classrooms. '

But he said: 'We have a once in a generation opportunity, right now, to find an extra gear for the British economy, and ensure higher living standards for the next generation to come.'

As part of the speech, the Chancellor will announce the creation of a new government-owned company, UK Government Investments, to help speed up the sell-off of publicly-owned shares in banks and other institutions.

These will include sale of shares in Lloyds Banking Group, UK Asset Resolution assets, Eurostar and the student loan book.

Mr Osborne said: 'If we want a more productive economy, let's get the government out of the business of owning great chunks of our banking system – and indeed other assets that should be in the private sector.

George Osborne as he delivered his keynote address at a dinner held by the CBI last night in London

George Osborne as he delivered his keynote address at a dinner held by the CBI last night in London

'To help that happen I can tell you that we're merging UK Financial Investments and the Shareholder Executive into one organisation, to return government investments back to the private sector.'

Mr Osborne claimed that Britain could become 'the most prosperous country in the world, and the best place to do business'.

He added: 'It would be very easy at the beginning of a second term to take our foot off the pedal. That's not what we're going to do.

'I want Britain to find that extra gear. So we deliver for working people. And with your help, that's exactly what I intend to do.'

MINISTERS' ANGER AS CBI TELLS FIRMS: WE'RE BETTER OFF IN EU

The Confederation of British Industry was accused of ‘undermining Britain’ last night, after it called on firms to speak out in favour of EU membership regardless of the terms.

In a provocative intervention, CBI president Sir Mike Rake said there was ‘no credible alternative’ to Britain remaining in the EU.

His comments sparked a business backlash, with firms saying it was too early to decide whether to back continued EU membership.

And Tory MPs accused Sir Mike of undermining David Cameron’s efforts to get a better deal for Britain in negotiations.

But the CBI boss insisted the case for EU membership was so clear that companies had a duty to ‘turn up the volume’ on the issue.

EurostarConservativesGeorge Osborne

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