The Right to Contest scheme is an expansion of rights under current law which allow challenges for the release of publicly owned land which is vacant or underused.
Under the new scheme, any land owned by central government departments that members of the public or organisations think could be made better use of can be made subject to a challenge to be released even if it is currently in use.
"If ministers are convinced that the site can be used in a more economically valuable way – for business, for homebuilding – then we will sell that land on the open market. And we will use the proceeds from the sale to pay down our debt, and to invest in our economy," Alexander said.
He said that the Government is also undertaking a new strategic land review under which input from local authorities and industry representatives will be invited to help identify further surplus or redundant land which can be sold "to support construction and local growth".
Alexander said that independent estimates had suggested that the public sector holds around 40% of developable sites and around 27% of brownfield land suitable for housing.