21st May 2015 05:31
LONDON (Alliance News) - A new UK government-owned company has been created to sell off more than GBP23 billion in assets this fiscal year, Chancellor of the Exchequer George Osborne said on Wednesday evening in London.
Speaking at the Confederation of British Industry's annual dinner, Osborne said Shareholder Executive, the body responsible for the government's holdings in companies such as Royal Mail PLC and uranium enrichment company Urenco, will be unified with UK Financial Investments, which takes charge of the taxpayer's holdings in bailed out banking assets.
The new company, named UK Government Investments, will be tasked with getting good value for taxpayers as shares in Lloyds Banking Group PLC, UK Asset Resolution assets, Eurostar and some loans made to students are sold off.
UKGI will be held owned by the UK's economic and finance ministry, meaning the Shareholder Executive will be transferred to the Treasury from the Secretary of State for Business, Innovation and Skills. The government wants the new company to be "fully up and running" in Autumn 2015.
The Shareholder Executive and UKFI will retain their names but will be based in the same place and share IT and other operating platforms in a move to save money and promote efficiency.
Osborne, speaking about two weeks since the Conservative Party won a surprise majority in the UK General Election, used his speech to highlight his key targets as Chancellor.
He wants to improve the UK's productivity, which has lagged behind that achieved in Germany and America, by investing in infrastructure and giving young people the skills they need. Selling off the state's holdings in businesses forms part of Osborne's plan.
"If we want a more productive allocation of finance, 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," Osborne told the CBI dinner.
"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 and deliver a good deal for the taxpayer," Osborne said.
Improving the UK's productivity levels forms one part of Osborne's three-pronged economic strategy, accompanied by plans to strengthen the state of the UK's finances and to make sure areas outside of London contribute more to the economy.
"For too long we?ve put too many of our eggs in one basket ? relying heavily on the success of London, and in particular financial services," Osborne said.
By Samuel Agini; [email protected]; @samuelagini
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