Based on a latest poll of local authorities, English councils are planning to sell social clubs, athletic facilities, and shopping arcades as they bet on a fire sale of properties to stabilize finances.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils for second-tier cities in the UK stated that six out of ten of local authorities are planning to sell assets to cover the escalating costs of adult and children’s social care.
Councils have in the past faced criticism for disposing of public land and land to support their finances, but they contend they must proceed to raise vital cash from asset sales or declare themselves bankrupt.
The group said that a high proportion of authorities seeking to generate funds from a fire sale of holdings marked “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and using financial reserves to weather increasing financial challenges.”
Specific Examples of Planned Disposals
One local authority in southeast England said its property management strategy included the sale of a shopping centre in a local town and a community venue in another town to generate 20 million pounds over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for Medway council, will also be sold under the plan.
Council Tax Rises and Wider Financial Pressures
This research of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will need to raise local levies next April to cover the rising cost of core provisions, higher levels of homelessness, and a longstanding accommodation deficit.
The authority explained it will press ahead with property disposals after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting creative strategies but certain measures take time to deliver both better provisions and financial savings,” stated Vince Maple.
He added: “We face demographic pressures which will persist to increase 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.”
Countrywide Trends and Projections
Research of county councils this week further found council budgets being stretched by the increasing figures of young people and older individuals requiring special educational assistance.
A network of councils said that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to manage increased demand.
Government officials have put off scheduled changes to the special educational needs framework until the coming year after a white paper setting out those reforms has been postponed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (IMD) covering English councils, several participating urban areas were included in the most deprived in England.
- “Member cities like several major towns rank in the top 30 nationally under the 2025 deprivation indices,” noted the study.
“While only a single urban area is among the ten most deprived for deprived neighbourhoods nationally, cities are much more prone to be in the most deprived fifth of the nation. The data highlights the scale of difficulties facing municipal officials across key cities in the coming year,” the analysis added.
“Council officials have been clear about the need for a equitable and lasting financial structure that reflects and responds to the real levels of deprivation and demand,” said Michael Mordey.
“Lacking this, councils will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their residents.”
A fifth of councils have cut or compromised social care provision in the last year, the study revealed.
