The Prime Minister has confirmed that the government is planning to sell the Channel Tunnel Rail Link -- now known as High Speed 1 -- as part of a plan to raise £16bn for the Exchequer within the next two years. Other assets on the PM's list include the Dartford river crossing, the Student Loan book and the Tote.

Gordon Brown was speaking to a meeting of City analysts this morning. No details of the proposed sales have yet been given.

High Speed 1 was completed only because of government intervention in 1999, when the Deputy Prime Minister of the day, John Prescott, devised a plan to bail out the scheme, which was in financial trouble.

The first stage was opened to traffic in 2003 and the second stage to St Pancras International followed in November 2007. This completed the route and allowed trains to run at high speed all the way from London to the Channel Tunnel.

A sale of High Speed 1 had already been signalled by the government before today's announcement.

The government took formal control of London & Continental Railways in June, as a step toward the sale of an operating concession for the route. At the time the DfT said the change of control ‘lays the ground for the sale of a long-term concession in High Speed 1, the value of which will be used towards offsetting public investment in the railway's construction’.

The European Commission has also agreed to those elements of the transaction which could be considered state aid.