The government says it would not be appropriate for councils to be given the chance to acquire prime development sites and put off paying for them until a later date.

Instead, 49 sites across the region that are owned by the soon-to-be-scrapped South East England Development Agency, and are estimated to be worth £107million, will be sold to the highest bidder. The proceeds used to cut the national deficit.

Councils will be allowed to bid for land and property being sold but with most short of cash, that is unlikely.

The fire sale has come under fire from council chiefs and politicians.

In Kent, the list of assets includes key development sites in Ashford, north Kent and the Medway Towns.

Ashford council chief executive John Bunnett said: "We accept the need for the government to realise assets to reduce the deficit, but there is a strong case in Ashford that values will rise over time and a longer perspective is needed if the public purse is to get the full benefit from the sites acquired a few years ago."

"We remain optimistic the government will recognise what has been achieved in Ashford and the undoubted potential that exists here, and that this will be reflected in their decisions on the future of these important assets."

In a statement, the Department for Business and Skills said: "The government has confirmed to the RDAs that it will not be appropriate to transfer assets to local authorities or other bodies for deferred consideration."

It added: "However, councils are able to purchase assets at the market value, and other options to allow them to be involved with RDA assets in future, are being considered."

KCC leader Paul Carter said: "There’s a grave danger some of these sites will be broken up again and fall into the hands of developers who will sit on them and treat them as land banks."

Shadow local government minister John Denham, who visited north Kent last Thursday to visit some of the sites, said:

"The government have given local authorities no option: buy now, or lose out.

"This fire sale is typical of a Tory-led government that prizes short term fixes over long term, sustainable growth and with no concept of the scale of the challenge the country is facing."

SEEDA is due to be wound up next year.