According to a latest survey of local authorities, English councils are preparing to offload community centers, sports centres, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Increasing Financial Challenges Drive Asset Sales
A coalition of councils for second-tier cities in England stated that six out of ten of local authorities are intending to sell assets to meet the escalating costs of adult and children’s social care.
Local governments have in the past faced criticism for selling public land and open spaces to support their budgets, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.
The group said that a significant number of councils attempting to raise money from a quick sale of assets represented “a distinct shift from 2024, when the largest share (six in ten) of municipal officials stated they would prioritise restructuring services and utilising financial reserves to manage increasing fiscal pressures.”
Detailed Examples of Proposed Disposals
One local authority in Kent said its asset disposal plan included the sale of a shopping centre in a local town and a community venue in another town to raise £20m over five years.
- Gillingham golf club and commercial properties owned in Worcestershire and Suffolk, which all generate rent for Medway council, will also be disposed of under the strategy.
Local Levy Increases and Wider Fiscal Pressures
The survey of councils in the key cities group, which includes several urban centers, further found that more than 70% of councils will need to increase council taxes next April to address the rising cost of essential services, increased rates of homelessness, and a persistent accommodation deficit.
The authority explained it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting creative strategies but certain measures take time to deliver both improved services and cost efficiency,” stated Vince Maple.
He continued: “We face demographic pressures 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 extremely difficult.”
National Trends and Forecasts
A survey of county councils this week also found local finances being strained by the increasing figures of young people and older individuals requiring Send support.
The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Ministers have put off planned reforms to the Send system until next year after a white paper outlining those reforms has been postponed.
Deprivation and Funding Gaps
According to the latest deprivation measures (IMD) for UK local authorities, many participating urban areas were included in the most deprived in England.
- “Participating urban centers like several major towns place in the top 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 far more likely to be in the worst-off 20% of England. The data highlights the scale of difficulties confronting municipal officials across key cities in the next twelve months,” the analysis concluded.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and responds to the actual extent of deprivation and demand,” said a council leader.
“Lacking this, councils will continue to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the detriment of their residents.”
One in five of councils have cut or compromised care services in the past 12 months, the survey found.
