Based on a latest survey of municipal councils, English councils are preparing to sell social clubs, sports centres, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Growing Fiscal Pressures Drive Asset Sales
A coalition of councils for second-tier cities in the UK stated that six out of ten of local authorities are planning to sell assets to cover the rising costs of adult and children’s social care.
Local governments have in the past come under fire for disposing of public land and land to support their finances, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
The group said that a high proportion of councils seeking to generate funds from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of local leaders said they would focus on restructuring services and using savings to manage growing fiscal pressures.”
Detailed Examples of Planned Disposals
One local authority in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a community venue in another town to raise £20m over five years.
- A local golf course and commercial properties held in two English counties, which all provide rental income for the authority, will additionally be disposed of under the strategy.
Local Levy Increases and Broader Financial Strains
This research of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will have to raise council taxes next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
Medway council explained it will press ahead with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting innovative approaches but certain measures take time to deliver both better provisions and cost efficiency,” stated Vince Maple.
He added: “There are population challenges which will persist to increase the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
National Patterns and Projections
Research of county councils this week also found council budgets being stretched by the increasing figures of young people and older individuals requiring Send support.
The County Councils Network said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Ministers have put off scheduled changes to the special educational needs framework until next year after a policy document outlining those reforms has been postponed.
Deprivation and Financial Shortfalls
Based on the most recent indices of deprivation (the Index of Multiple Deprivation) for English councils, many participating urban areas were included in the most disadvantaged in England.
- “Participating urban centers like several major towns place in the most deprived 30 nationally under the 2025 IMD measures,” noted the report.
“While only a single urban area is among the ten most deprived for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of England. The figures highlights the scale of challenges confronting local leaders across major urban centers in the next twelve months,” the analysis added.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that accounts for and responds to the actual extent of deprivation and demand,” stated a council leader.
“Without this, councils will continue to face impossible choices around which essential services to fund, and which to cut, to the disadvantage of their communities.”
A fifth of councils have cut or compromised care services in the past 12 months, the study found.
