Based on a latest survey of local authorities, English councils are preparing to sell social clubs, athletic facilities, and shopping arcades as they bet on a fire sale of assets to balance the books.
Growing Fiscal Challenges Drive Asset Sales
A coalition of councils for second-tier cities in the UK reported that 60% of councils are planning to sell assets 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 budgets, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.
The group said that a high proportion of authorities seeking to raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of municipal officials said they would prioritise service redesigns and using savings to weather increasing financial challenges.”
Specific Cases of Proposed Disposals
Medway Council in southeast England announced its property management strategy featured the disposal of a retail complex in Rainham and a community venue in Rochester to generate 20 million pounds over five years.
- A local golf course and commercial properties owned in two English counties, which all provide rental income for the authority, will additionally be sold under the strategy.
Local Levy Rises and Broader Financial Pressures
This research of councils in the key cities group, which includes several urban centers, also found that over seven in ten of authorities will need to raise council taxes next April to cover the growing cost of core provisions, higher levels of housing insecurity, and a persistent accommodation deficit.
The authority said it will press ahead with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are taking creative strategies but certain measures take time to achieve both improved services and financial savings,” said Vince Maple.
He added: “There are population challenges which will continue to increase the strains we have. As a unitary authority, we had a 91% cut in our central funding from over the past decade, which is very challenging.”
Countrywide Trends and Projections
A survey of regional authorities this week further found local finances being strained by the increasing figures of children and older individuals needing Send support.
The County Councils Network projected that local shortfalls will reach £4.4bn a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have put off scheduled changes to the Send system until next year after a policy document setting out those changes was recently delayed.
Deprivation and Funding Gaps
Based on the most recent indices of deprivation (IMD) for English councils, many participating urban areas were among the most deprived in England.
- “Participating urban centers like several major towns place in the top 30 across the country under the 2025 IMD measures,” noted the study.
“While only a single urban area is in the top 10 for deprived neighbourhoods nationally, cities are much more prone to be in the worst-off 20% of England. The figures highlights the extent of challenges confronting municipal officials across key cities in the coming year,” the analysis added.
“Local government leaders have been clear about the need for a fair and sustainable funding system that accounts for and addresses the actual extent of deprivation and need,” stated a council leader.
“Lacking this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their residents.”
One in five of councils have reduced or weakened social care provision in the past 12 months, the study revealed.
