Eurostar: Government's 40% Stake Up For Sale

The Government is to sell its 40% stake in Eurostar as part of a plan to privatise £20bn of financial and corporate assets by 2020.

The announcement is contained in the new national infrastructure plan (NIP) which sets out over £375bn of planned public and private investments to 2030 and beyond.

The plans include a new target for selling off financial assets, doubling the amount from £10bn to £20bn including shareholding in the cross-channel train operator.

It comes just weeks after ministers were criticised for undervaluing the Royal Mail before its flotation.

Ministers have been given a boost by major insurers, who have announced plans to invest £25bn in UK infrastructure projects over the next five years.

Last month Eurostar revealed it had seen an increase in revenues and passenger numbers compared with last summer.

Sales revenue for the period July-September 2013 reached £207m - a 10% increase on the same period last year - and passenger numbers in summer 2013 rose 5% to 2.7 million.

The planned infrastructure investment has increased from £309bn last year to more than £375bn, with 291 of the 646 projects and programmes already under construction.

The decision by insurers Legal and General, Prudential, Aviva, Standard Life, Friends Life and Scottish Widows to invest in infrastructure follows changes in European rules pushed for by the UK which incentivise investment in a wider range of assets.

Danny Alexander will announce the plans

Treasury Chief Secretary Danny Alexander will unveil the NIP alongside Commercial Secretary and former London Olympics chief Lord Deighton.

Mr Alexander will say the announcement is a "massive vote of confidence in the UK economy".

"It supports the wider £100bn public investment to rebuild Britain over the next seven years that I announced at the Spending Round 2013. Underground, overground, onshore, offshore, wired or wireless, tarmac or train track. You name it, we're building it right now.

"This is great news for the people of the UK because after years of neglect, the UK's energy, road, rail, flood defence, communications and water infrastructure needs renewal."

Shadow chief secretary to the Treasury Chris Leslie said: "Scheme after scheme has been announced to great fanfare but then little actually delivered.

"Yet another announcement from ministers about possible future investment will do little to reassure business that warm words will finally translate into diggers in the ground."

Other measures being announced include:

:: The scrapping of plans to create the UK's first toll road for a decade. Motorists will not be charged to use the A14 between Cambridge and Huntingdon once the improvement scheme, due to start in 2016, is completed.

:: A further £50m will be allocated to redevelop the railway station at Gatwick Airport.

:: A Government guarantee could support finance for the development of a new nuclear power station at Wylfa on Anglesey.

:: The £1bn Northern Line extension to Battersea in south west London will also be guaranteed by the Government.

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