According to a latest study of municipal councils, English councils are planning to offload social clubs, sports centres, and shopping arcades as they bet on a fire sale of properties to balance the books.
Increasing Financial Challenges Prompt Asset Sales
The Key Cities Group for major urban areas in the UK stated that 60% of councils are intending to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Councils have previously faced criticism for selling playing fields and land to shore up their budgets, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
The group said that a high proportion of councils seeking to raise money from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of municipal officials stated they would focus on service redesigns and using financial reserves to manage growing fiscal pressures.”
Specific Cases of Proposed Disposals
Medway Council in Kent said its property management strategy featured the disposal of a shopping centre in a local town and a community venue in another town to generate £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all generate rent for Medway council, will also be disposed of under the plan.
Council Tax Increases and Wider Financial Strains
This research of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will have to increase council taxes next spring to cover the growing cost of core provisions, increased rates of housing insecurity, and a longstanding accommodation deficit.
The authority explained it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures take time to deliver both improved services and financial savings,” said Vince Maple.
He continued: “There are population challenges which will continue to increase the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Trends and Projections
Research of regional authorities this week also found local finances being stretched by the increasing figures of children and older individuals needing special educational assistance.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they grapple to manage rising needs.
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.
Deprivation and Funding Shortfalls
Based on the most recent deprivation measures (IMD) covering UK local authorities, several participating urban areas were among the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 IMD measures,” noted the report.
“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 England. The figures highlights the scale of difficulties confronting local leaders across key cities in the next twelve months,” the analysis added.
“Council officials have been explicit about the necessity for a equitable and lasting funding system that accounts for and addresses the real levels of disadvantage and need,” said Michael Mordey.
“Without 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 communities.”
One in five of councils have cut or compromised social care provision in the last year, the study found.
