Based on a recent poll of municipal councils, English councils are preparing to sell social clubs, sports centres, and retail spaces as they rely on a fire sale of properties to balance the books.
Increasing Fiscal Challenges Prompt Asset Sales
A coalition of councils for major urban areas in England reported that six out of ten of local authorities are intending to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for selling playing fields and open spaces to shore up their finances, but they argue they must continue to raise vital cash from asset sales or face insolvency.
The group said that a significant number of councils seeking to generate funds from a quick sale of assets represented “a distinct shift from 2024, when the majority (six in ten) of municipal officials stated they would focus on restructuring services and using savings to manage increasing financial challenges.”
Specific Cases of Planned Disposals
One local authority in southeast England announced its property management strategy featured the sale of a retail complex in a local town and a community venue in Rochester to raise £20m over the next half-decade.
- A local golf course and commercial properties held in two English counties, which all generate rent for Medway council, will also be sold under the plan.
Council Tax Rises and Wider Fiscal Pressures
This research of councils in the key cities group, which includes several urban centers, further found that over seven in ten of authorities will need to increase local levies next spring to address the growing cost of essential services, increased rates of housing insecurity, and a longstanding accommodation deficit.
Medway council said it will press ahead with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting creative strategies but some of these take time to deliver both improved services and financial savings,” stated a council leader.
He added: “There are population challenges which will persist to increase the pressures we have. As a unitary authority, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”
National Patterns and Forecasts
A survey of county councils this week also found local finances being stretched by the growing number of young people and adults needing Send support.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they grapple to cope with increased demand.
Ministers have delayed scheduled changes to the Send system until next year after a white paper setting out those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the latest deprivation measures (the Index of Multiple Deprivation) for UK local authorities, several key cities members were included in the most disadvantaged in England.
- “Member cities like several major towns rank in the most deprived 30 nationally under the 2025 deprivation indices,” noted the study.
“While only one key city is among the top 10 for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of the nation. The figures highlights the extent of difficulties facing municipal officials across key cities in the coming year,” the report added.
“Council officials have been explicit about the need for a equitable and lasting financial structure that accounts for and responds to the real levels of disadvantage and need,” said a council leader.
“Without this, local authorities will persist to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their residents.”
One in five of local authorities have cut or compromised social care provision in the past 12 months, the study revealed.
