Based on a new study of local authorities, English councils are planning to sell social clubs, athletic facilities, and shopping arcades as they rely on a fire sale of assets to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils representing major urban areas in the UK stated that six out of ten of councils are planning to sell assets to meet the rising costs of adult and children’s social care.
Councils have previously faced criticism for disposing of playing fields and land to shore up their finances, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.
The group noted that a high proportion of authorities attempting to raise money from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of municipal officials said they would prioritise restructuring services and utilising savings to manage increasing fiscal pressures.”
Specific Cases of Proposed Disposals
Medway Council in Kent said its property management strategy featured the sale of a shopping centre in a local town and a community venue in another town to raise 20 million pounds over the next half-decade.
- Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will also be disposed of under the strategy.
Local Levy Increases and Broader Financial Pressures
The survey of local authorities in the key cities group, which includes several urban centers, also found that over seven in ten of councils will need to raise local levies next April to address the growing cost of core provisions, increased rates of homelessness, and a longstanding accommodation deficit.
The authority said it will press ahead with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but certain measures require time to achieve both improved services and cost efficiency,” stated Vince Maple.
He continued: “There are demographic pressures which will persist to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Trends and Projections
Research of regional authorities recently also found local finances being strained by the increasing figures of children and older individuals needing Send support.
A network of councils said that council deficits will reach £4.4bn a year by 2029, as they struggle to manage rising needs.
Government officials have put off scheduled changes to the Send system until next year after a policy document outlining those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (IMD) covering UK local authorities, several key cities members were included in the most deprived in England.
- “Participating urban centers like several major towns place in the most deprived 30 nationally under the 2025 deprivation indices,” said the report.
“Although only a single urban area is among the top 10 for disadvantaged communities nationally, cities are far more likely to be in the most deprived fifth of the nation. The figures underscores the scale of difficulties confronting local leaders across key cities in the next twelve months,” the analysis added.
“Council officials have been explicit about the need for a equitable and lasting funding system that reflects and addresses the real levels of disadvantage and demand,” stated a council leader.
“Lacking this, councils will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of councils have reduced or weakened social care provision in the last year, the study revealed.
