Based on a recent study of local authorities, English councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of properties to balance the books.
Growing Fiscal Pressures Drive Asset Sales
A coalition of councils for major urban areas in the UK reported that six out of ten of councils are planning to dispose of properties to cover the rising costs of adult and children’s social care.
Local governments have in the past faced criticism for disposing of public land and open spaces to support their finances, but they argue they must proceed to raise vital cash from asset sales or face insolvency.
The group noted that a significant number of councils attempting to generate funds from a quick sale of holdings represented “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 growing financial challenges.”
Detailed Examples of Planned Disposals
One local authority in southeast England announced its asset disposal plan included the sale of a retail complex in a local town and a social club in Rochester to raise £20m over the next half-decade.
- Gillingham golf club and business parks held in Worcestershire and Suffolk, which all generate rent for Medway council, will also be disposed of under the plan.
Council Tax Rises and Broader Fiscal Pressures
The survey of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will need to raise council taxes next April to cover the growing cost of essential services, higher levels of housing insecurity, and a persistent accommodation deficit.
The authority said it will press ahead with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but certain measures take time to deliver both improved services and cost efficiency,” stated Vince Maple.
He added: “There are demographic pressures which will persist to add to the strains we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is very challenging.”
National Trends and Forecasts
Research of regional authorities recently further found local finances being strained by the increasing figures of young people and older individuals needing Send support.
A network of councils projected that council deficits will reach 4.4 billion pounds a year by 2029, as they grapple to cope with rising needs.
Government officials have put off scheduled changes to the Send system until the coming year after a white paper outlining those changes has been postponed.
Disadvantage and Financial Gaps
Based on the most recent deprivation measures (the Index of Multiple Deprivation) for UK local authorities, many participating urban areas were among the most disadvantaged in England.
- “Member cities like several major towns rank in the top 30 nationally under the 2025 IMD measures,” noted the report.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, cities are far more likely to be in the most deprived fifth of England. The figures underscores the scale of challenges confronting local leaders across key cities in the next twelve months,” the report added.
“Local government leaders have been explicit about the necessity for a fair and sustainable financial structure that accounts for and addresses the actual extent of deprivation and need,” said Michael Mordey.
“Without 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 communities.”
A fifth of local authorities have cut or compromised social care provision in the last year, the survey found.
