According to a latest survey of municipal councils, English councils are preparing to offload social clubs, sports centres, and shopping arcades as they bet on a rapid disposal of assets to balance the books.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils representing major urban areas in the UK reported that six out of ten of local authorities are intending to sell assets to cover the escalating costs of adult and children’s social care.
Councils have previously faced criticism for selling public land and open spaces to support their budgets, but they contend they must continue to raise vital cash from property disposals or face insolvency.
The group said that a significant number of authorities attempting to raise money from a quick sale of assets marked “a clear change from 2024, when the majority (six in ten) of municipal officials said they would focus on restructuring services and using financial reserves to weather growing fiscal pressures.”
Specific Cases of Planned Disposals
Medway Council in Kent announced its asset disposal plan included the sale of a shopping centre in Rainham and a community venue in another town to generate £20m over five years.
- A local golf course and business parks held in two English counties, which all generate rent for the authority, will also be sold under the plan.
Council Tax Increases and Broader Financial Pressures
This research of councils in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will need to increase local levies next April to address the rising cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
Medway council said it will press ahead with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.
“We are taking creative strategies but certain measures take time to deliver both improved services and financial savings,” said Vince Maple.
He continued: “We face demographic pressures which will persist to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”
National Trends and Projections
Research of regional authorities this week further found council budgets being strained by the growing number of young people and adults requiring Send support.
A network of councils projected that local shortfalls will hit 4.4 billion pounds a year by 2029, as they struggle to manage rising needs.
Ministers have put off planned reforms to the Send system until next year after a white paper setting out those changes has been postponed.
Deprivation and Financial Shortfalls
Based on the most recent indices of deprivation (IMD) covering UK local authorities, many key cities members were included in the most deprived in England.
- “Participating urban centers like several major towns place in the most deprived 30 nationally under the 2025 IMD measures,” said the report.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of England. The data underscores the scale of challenges confronting municipal officials across major urban centers in the next twelve months,” the report concluded.
“Council officials have been explicit about the need for a equitable and lasting funding system that reflects and addresses the real levels of deprivation and need,” said Michael Mordey.
“Without this, local authorities will continue to face difficult decisions around which essential services to fund, and which to cut, to the disadvantage of their communities.”
One in five of councils have cut or compromised social care provision in the past 12 months, the survey revealed.
