The move, which is likely to reap more profits for the government than the sale of all the assets together, follows reports that potential buyers were looking to make a profit from the sale of individual parts of the business anyway.

It also follows US engineering group Fluor's offer of £400 million for BNG.

The key part of the business is the contract to operate the controversial Sellafield nuclear waste and engineering site which is owned by the Nuclear Decommissioning Authority.

The competitive tender process is set to start next year.

Alistair Darling, secretary of state for trade and industry said in a statement that the "best way of securing the right contractor for Sellafield is to proceed with a separate competition with the full focus on that site".

Mr Darling also said the plan to sell off all the BNG assets together "was not the best way of meeting the different needs of BNG's other businesses".

Earlier this month, BNG was fined over the leaking of 83,000 tonnes of acid at the Sellafield complex.

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