The British Tote - the state-owned bookmaker - is to be sold off in the Labour Government's first privatisation, Home Secretary Jack Straw announced yesterday.

Straw said in a Commons written answer that he had accepted the recommendations of a tripartite review by the Home Office, the Treasury and the Tote itself.

He said that the method of a sale had not been decided and that a sale to the racing industry had not been ruled out.

"Free from its existing status as a public body, the Tote will be better placed to maintain flexibility and meet its commercial aspirations," The Home Secretary added.

The Tote is worth an estimated £150 million and earns £10.2 million a year for the racing industry.