Sale of State Assets due to Crisis

Gordon Brown

Gordon Brown

British Prime Minister Gordon Brown will announce the sale of government assets in order to obtain fresh funds of 3 million pounds or equivalent to U.S. $ 4.8 million.  Assets to be sold-all nonfinancial assets-in the next two years include the railway network Channel Tunnel, Dartford Bridge, a tunnel that crosses the River Thames, Tote bookie firms, and 33 per cent stake in the British Government konsosium European uranium, Urenco. Based on the Downing Street press release, the office of the Prime Minister, yesterday, Brown had to menggumumkan sale of these assets in a speech today.

On that occasion, Brown will also announce that local governments will also sell their assets worth 13 billion pounds (or 21 billion U.S. dollars). Money from the sale of assets will be used to finance investment and pay the debt. England was suffering the worst recession for a period of several decades and its budget fall into deficit. The difference between spending and revenues continue to widen. However, Brown has recently expressed optimism the country’s economic development.

In an interview published on Saturday, he said, the UK economy will grow 1.5 percent next year. Estimates were higher than many economists forecast. Today’s speech was part of a bid to answer the opinion of the opposition (the Conservatives) that public spending cuts will reduce the huge debt and make the economic wheels turning again. The Conservative Party has proposed the extension of retirement age, tightening of welfare programs, and freeze the payment of hundreds of thousands of workers in the public sector.

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One response to “Sale of State Assets due to Crisis

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