Based on a recent poll of local authorities, English councils are planning to offload social clubs, athletic facilities, and retail spaces as they bet on a rapid disposal of assets to stabilize finances.
Growing Financial Pressures Drive Asset Sales
A coalition of councils representing second-tier cities in England stated 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 previously faced criticism for selling public land and open spaces to support their budgets, but they argue they must continue to generate essential revenue from property disposals or face insolvency.
This coalition noted that a high proportion of councils attempting to generate funds from a fire sale of assets represented “a distinct shift from 2024, when the majority (60%) of municipal officials stated they would focus on service redesigns and using savings to weather growing financial challenges.”
Detailed Examples of Planned Sales
One local authority in Kent said its property management strategy included the sale of a retail complex in Rainham and a social club in Rochester to generate 20 million pounds over five years.
- A local golf course and commercial properties held in Worcestershire and Suffolk, which all generate rent for the authority, will additionally be sold under the strategy.
Local Levy Increases and Broader Fiscal Strains
The survey of local authorities in the coalition, which covers several urban centers, further found that over seven in ten of councils will need to raise 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, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but some of these take time to deliver both better provisions and financial savings,” said a council leader.
He continued: “There are demographic pressures which will persist to increase the strains we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Trends and Projections
Research of county councils recently also found council budgets being stretched by the growing number of children and adults requiring special educational assistance.
The County Councils Network said that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to manage rising needs.
Government officials have delayed scheduled changes to the Send system until the coming year after a policy document setting out those reforms was recently delayed.
Disadvantage and Funding Gaps
Based on the latest deprivation measures (the Index of Multiple Deprivation) for UK local authorities, many key cities members were included in the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 IMD measures,” noted the report.
“While only a single urban area is among the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of England. The figures highlights the scale of challenges confronting municipal officials across key cities in the coming year,” the analysis concluded.
“Council officials have been clear about the necessity for a fair and sustainable financial structure that accounts for and responds to the real levels of deprivation and demand,” stated Michael Mordey.
“Without this, councils will continue to face impossible choices around which vital provisions to fund, and which to cut, to the detriment of their communities.”
One in five of local authorities have cut or compromised social care provision in the past 12 months, the study found.
