Based on a latest survey of local authorities, English councils are planning to sell social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of assets to stabilize finances.
Growing Fiscal Challenges Drive Asset Sales
A coalition of councils for second-tier cities in the UK reported that 60% of local authorities are planning to sell assets to meet the escalating costs of adult and children’s social care.
Councils have previously faced criticism for selling playing fields and land to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or face insolvency.
The group noted that a significant number of authorities attempting to raise money from a fire sale of holdings marked “a distinct shift from 2024, when the majority (60%) of municipal officials said they would prioritise restructuring services and utilising financial reserves to manage growing financial challenges.”
Detailed Cases of Proposed Sales
One local authority in southeast England announced its property management strategy featured the disposal of a retail complex in Rainham and a community venue in Rochester to raise £20m over five years.
- A local golf course and commercial properties held in two English counties, which all provide rental income for Medway council, will also be sold under the strategy.
Council Tax Rises and Wider Financial Strains
This research of councils in the key cities group, which covers several urban centers, also found that more than 70% of councils will have to raise council taxes next spring to cover the rising cost of essential services, increased rates of homelessness, and a persistent accommodation deficit.
Medway council said it will proceed with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.
“We are taking creative strategies but certain measures require time to achieve both improved services and financial savings,” stated Vince Maple.
He continued: “We face population challenges which will continue 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 extremely difficult.”
National Patterns and Forecasts
Research of county councils this week further found council budgets being stretched by the growing number of young people and older individuals needing Send support.
A network of councils said that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to manage rising needs.
Ministers have put off planned reforms to the special educational needs framework until the coming year after a policy document setting out those changes was recently delayed.
Deprivation and Funding Gaps
Based on the latest indices of deprivation (IMD) for English councils, several participating urban areas were among the most deprived in the country.
- “Participating urban centers like several major towns place in the most deprived 30 across the country under the 2025 IMD measures,” said the study.
“Although only a single urban area is among the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of the nation. The data highlights the scale of challenges facing local leaders across major urban centers in the next twelve months,” the report added.
“Local government leaders have been clear about the necessity for a equitable and lasting financial structure that reflects and responds to the real levels of disadvantage and need,” said Michael Mordey.
“Without this, local authorities will persist to face impossible choices around which essential services to allocate spend to, and which to reduce, to the disadvantage of their residents.”
A fifth of local authorities have reduced or weakened care services in the last year, the study found.
