Privatisation could make a return

Martin Payne, the divisional director of Brewin Dolphin in Leeds, said the Royal Mail could be sold off.

He said: “In 1984, the privatisation of BT, a state-owned business, paved the way for privatisations around the globe. The success of BT created a wave of sell-offs that presented opportunities for investors.”

Mr Payne said British Gas, which was sold in 1986, had been the most profitable privatisation.

He added: “Strong management has transformed British Gas into a global integrated oil and gas company and investors have reaped rewards.

“In 2008, the Adam Smith Institute estimated that the government could raise as much as £20bn from privatisation, with candidates including; the Royal Mail, Channel 4, BBC Worldwide, Scottish Water, Northern Ireland Water, and the National Air Traffic Control System.

“The opportunities to buy shares at a discount, the scope for rapid growth following flotation and the chance of premium takeover bids from larger firms down the line, all contribute to expectation of profits.”