In an effort to tackle Britain’s spiralling public debt problem, the Government has today unveiled proposals that will see it raise £16 billion via asset sales.

In order to reduce the budget deficit, which is set to hit a record £220 billion (the equivalent of 12% of GDP), the Government has taken action by ordering sale of assets worth £16 billion over a two year period.

Prime Minister Gordon Brown said: "We’ve listed a number of assets that we are determined over the next period of time to put into the marketplace."

"That includes of course the student loan book, the Tote, the Dartford Tunnel, plus the Channel rail link, it includes Urenco subject to security issues being addressed," added the Prime Minister.

It is hoped this will raise around £3 billion while a further £13 billion will be raised through asset sales from Whitehall and local authorities.

Mr Brown said the sales were key to Labour's "clear and credible" plans for halving the deficit over the next four years.

Liberal Democrat Treasury spokesman Vince Cable said asset sales made sense "at least in principle".

But he added: "Attempts to sell off large amounts of government land into a very depressed market such as we have now would be, frankly, barmy."

"These asset sales should be based on a financial calculation, not a political one."

Meanwhile, the proposals come just a week after Shadow Chancellor, George Osborne, announced the Conservative Party’s plans for tackling UK deficit if it wins the next election.