The government’s claim that £16bn of asset sales could be realised has been disputed by opposition politicians and figures from local government.

Downing Street had yesterday briefed that a total of £16bn could be made by disposing of high-profile assets such as the Tote and Dartford Crossing, as well as the sale of unwanted local government property.

But only around £3bn of that total would be made up of central government assets, with no requirement for local authorities either to sell assets or release the funds back to Whitehall.

Questioning in the Commons yesterday, Liberal Democrat Treasury spokesman Vince Cable said: “There is no pressure on local authorities to make these disposals and they would be free to invest the money. How would that narrow the deficit?”

Chief Secretary to the Treasury Liam Byrne said the government estimated around £11bn of the £16bn sales would come from local authorities, a figure that he claimed was based “on a long term picture of what local government tends to sell each year”.

He added: “Over the past 20 years, local authorities have raised something like £3.7bn a year, and of course they are free to keep those receipts and reinvest them in priorities such as affordable housing and schools.”

The Local Government Association complained that the Treasury had failed to consult councils before making yesterday’s announcement, and warned that Whitehall could not compel them to sell assets in a depressed market.

Chair Margaret Eaton said councils sold surplus assets as a matter of course, but more detail would be needed to avoid a battle between central and local government.

“Local government will dispose of assets if they are not required but, given the current financial climate, this is not a good time to sell. It needs to be local councils working with local people deciding when, or if, there is a right time to sell assets,” she said.

“The proposals also need to be fleshed out further. What sort of assets are councils being expected to sell? Does it include school playing fields, cemeteries or libraries? If a council does not believe that a specific asset should be sold, how do we avoid protracted legal wrangling that would cost the taxpayer money?”

Meanwhile, shadow chief secretary to the Treasury Philip Hammond said in the Commons that the government had “chosen to peddle the illusion” that the sales could ease the pain of fiscal tightening in the years to come.