Think Tanks


17 Oct 2010 20:24:03

Adam Smith Institute identifies £90 billion of privatisation possibilities

By Tim Montgomerie

On Friday the Adam Smith Institute published a report calling on David Cameron to sell the government's stakes in the nationalised banks, Royal Mail, Network Rail, BBC Worldwide, Channel 4 and other state assets. The report - by Nigel Hawkins - estimates that £90 billion could be raised.

The privatisation candidates are summarised in the table below (click to enlarge) and there's more in this PDF.

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11 Jun 2010 11:18:31

ASI report lists £16bn of non-bank privatisation opportunities

A new Adam Smith Institute report recommends 3% annual cuts in every departmental budget for the life of the parliament. Such cuts would reduce spending by £91 billion by 2015. The report by Nigel Hawkins is titled The Party is Over - A Blueprint for Fiscal Stability. Mr Hawkins, a City economist, backs George Osborne's decision to cut early but questions the decision to ringfence the NHS. It argues that the NHS budget should be cut by 2% every year with a focus on:

  • Reducing payroll costs outside nursing;
  • Managing hospital bed occupation more effectively;
  • Creating greater efficiencies within PCTs;
  • Cutting the annual drugs bill;
  • Regaining control of the disastrous NHS IT project; and
  • Scaling back the hospital-building programme.

Hawkins recommends that Secretaries of State unable to deliver 3% annual cuts should be fired.

The report - PDF here - also identified candidates for privatisation. Hawkins estimates that George Osborne can gather £16bn from non-bank privatisations including £3.8bn from the Royal Mail and £48.5bn from sale of the nationalised banks.

Click on table to enlarge.

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