Based on a latest study of local authorities, English councils are planning to sell community centers, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.
Growing Fiscal Pressures Drive Asset Sales
A coalition of councils for second-tier cities in England reported that six out of ten of councils are planning to sell assets to cover the rising costs of adult and children’s social care.
Councils have in the past come under fire for disposing of playing fields and land to support their budgets, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
The group noted 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 (60%) of municipal officials said they would focus on restructuring services and utilising financial reserves to weather increasing fiscal pressures.”
Specific Examples of Planned Sales
One local authority in southeast England announced its property management strategy featured the disposal of a shopping centre in a local town and a community venue in Rochester to generate 20 million pounds over five years.
- Gillingham golf club and commercial properties held in two English counties, which all provide rental income for Medway council, will also be sold under the plan.
Council Tax Increases and Wider Financial Strains
This research of councils in the coalition, which covers several urban centers, further found that over seven in ten of authorities will need to increase local levies next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but some of these take time to achieve both better provisions and cost efficiency,” stated Vince Maple.
He added: “We face population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Patterns and Projections
A survey of county councils this week further found local finances being strained by the growing number of young people and adults requiring Send support.
The County Councils Network projected that council deficits will reach £4.4bn a year by the end of the decade, as they grapple to manage increased demand.
Ministers have put off planned reforms to the Send system until next year after a policy document outlining those changes was recently delayed.
Deprivation and Financial Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) for UK local authorities, many key cities members were among the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 IMD measures,” said the report.
“Although only one key city is in 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 highlights the extent of difficulties confronting local leaders across major urban centers in the coming year,” the report added.
“Council officials have been clear about the need for a equitable and lasting funding system that reflects and responds to the actual extent of deprivation and need,” stated a council leader.
“Lacking this, local authorities will persist to face difficult decisions around which essential services to allocate spend to, and which to reduce, to the disadvantage of their residents.”
A fifth of councils have cut or compromised social care provision in the last year, the study revealed.
