Based on a new survey of municipal councils, English councils are preparing to sell community centers, athletic facilities, and shopping arcades as they rely on a fire sale of assets to stabilize finances.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils for second-tier cities in the UK stated that six out of ten of councils are planning to dispose of properties to meet 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 contend they must proceed to generate essential revenue from property disposals or declare themselves bankrupt.
The group said that a high proportion of councils attempting to generate funds from a quick sale of holdings marked “a clear change from 2024, when the largest share (six in ten) of municipal officials said they would focus on service redesigns and utilising savings to weather increasing fiscal pressures.”
Specific Examples of Proposed Disposals
One local authority in Kent announced its asset disposal plan included the sale of a retail complex in Rainham and a social club in another town to generate 20 million pounds over five years.
- A local golf course and business parks held in Worcestershire and Suffolk, which all generate rent for Medway council, will also be sold under the plan.
Local Levy Rises and Broader Financial Strains
This research of councils in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of authorities will have to increase council taxes next spring to cover the rising cost of essential services, higher levels of homelessness, and a persistent accommodation deficit.
Medway council said it will proceed with property disposals after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.
“We are taking creative strategies but some of these require time to achieve both improved services and financial savings,” stated Vince Maple.
He added: “We face demographic pressures which will persist to add to the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is extremely difficult.”
National Patterns and Projections
A survey of county councils this week also found local finances being strained by the growing number of children and older individuals needing Send support.
A network of councils projected that council deficits will reach £4.4bn a year by 2029, as they grapple to cope with rising needs.
Government officials have put off scheduled changes to the special educational needs framework until next year after a policy document setting out those reforms has been postponed.
Deprivation and Funding Shortfalls
According to the latest indices of deprivation (IMD) for UK local authorities, many participating urban areas were among the most deprived in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 IMD measures,” said the report.
“While only a single urban area is among the top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of England. The data underscores the extent of challenges confronting municipal officials across major urban centers in the next twelve months,” the report added.
“Local government leaders have been explicit about the need for a fair and sustainable funding system that accounts for and addresses the real levels of disadvantage and demand,” said Michael Mordey.
“Without this, councils will continue to face impossible choices around which essential services to allocate spend to, and which to reduce, to the disadvantage of their communities.”
One in five of local authorities have cut or compromised care services in the last year, the survey found.
