Based on a new poll of local authorities, English councils are preparing to sell community centers, sports centres, and retail spaces as they bet on a rapid disposal of assets to stabilize finances.
Increasing Financial Pressures Drive Asset Sales
A coalition of councils for second-tier cities in the UK reported that six out of ten of local authorities are intending to dispose of properties to cover the escalating costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of playing fields and land to shore up their finances, but they contend they must continue to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition said that a significant number of councils seeking to generate funds from a fire sale of holdings represented “a clear change from 2024, when the majority (60%) of municipal officials stated they would prioritise restructuring services and using financial reserves to manage growing financial challenges.”
Detailed Examples of Planned Disposals
Medway Council in Kent said its property management strategy included the sale of a retail complex in Rainham and a social club in Rochester to generate £20m over five years.
- A local golf course and commercial properties owned in two English counties, which all provide rental income for the authority, will also be disposed of under the strategy.
Local Levy Increases and Wider Fiscal Strains
The survey of local authorities in the key cities group, which covers several urban centers, further found that over seven in ten of authorities will have to increase local levies next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent 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 temporary accommodation.
“We are adopting innovative approaches but some of these require time to achieve both improved services and financial savings,” stated Vince Maple.
He continued: “There are population challenges which will persist to add to 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 recently further found council budgets being strained by the growing number of young people and adults requiring Send support.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they grapple to cope with increased demand.
Government officials have put off planned reforms to the special educational needs framework until the coming year after a white paper setting out those reforms was recently delayed.
Disadvantage and Funding Gaps
Based on the latest indices of deprivation (IMD) covering UK local authorities, several key cities members were included in the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 across the country under the 2025 deprivation indices,” said 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 underscores the extent of challenges facing local leaders across key cities in the next twelve months,” the analysis concluded.
“Council officials have been explicit about the need for a fair and sustainable funding system that accounts for and responds to the real levels of deprivation and demand,” stated a council leader.
“Lacking this, councils will continue to face impossible choices around which essential services to allocate spend to, and which to cut, to the detriment of their residents.”
One in five of councils have cut or compromised social care provision in the past 12 months, the study found.
