Gordon Brown has rejected claims that the controversial sell-off of Qinetiq, the former state-owned military research body, was "financially naive".

His defence of privatisation yesterday came only days before a National Audit Office report, which is expected to highlight flaws in the flotation strategy and question whether returns to the public purse were maximised. People familiar with the report say the NAO broadly supports the privatisation process but questions its timing and incentives offered to senior civil servants handling the deal.