Based on a latest study of local authorities, English councils are planning to offload community centers, athletic facilities, and retail spaces as they bet on a rapid disposal of properties to balance the books.
Increasing Financial Pressures Prompt Asset Sales
The Key Cities Group representing major urban areas in England reported that six out of ten of councils are intending to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have in the past faced criticism for selling playing fields and land to shore up their finances, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
The group said that a significant number of councils attempting to generate funds from a fire sale of holdings marked “a clear change from 2024, when the largest share (60%) of municipal officials stated they would prioritise restructuring services and using financial reserves to manage increasing financial challenges.”
Detailed Examples of Planned Disposals
One local authority in Kent said its asset disposal plan featured the disposal of a shopping centre in a local town and a social club in another town to generate £20m over the next half-decade.
- A local golf course and commercial properties held in two English counties, which all generate rent for the authority, will additionally be sold under the plan.
Local Levy Rises and Wider Fiscal Pressures
The survey of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will have to increase local levies next April to cover the growing cost of essential services, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council said it will proceed with asset sales 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 some of these require time to achieve both improved services and financial savings,” said a council leader.
He continued: “There are population challenges which will continue to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Trends and Projections
A survey of county councils recently also found local finances being stretched by the growing number of young people and older individuals requiring Send support.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they grapple to manage rising needs.
Government officials have delayed scheduled changes to the special educational needs framework until the coming year after a policy document outlining those reforms has been postponed.
Deprivation and Financial Shortfalls
Based on the most recent deprivation measures (the Index of Multiple Deprivation) for UK local authorities, many participating urban areas were included in the most disadvantaged in England.
- “Member cities like several major towns place in the top 30 nationally under the 2025 IMD measures,” said the report.
“Although only one key city is among the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The data underscores the extent of difficulties facing local leaders across key cities in the coming year,” the analysis concluded.
“Council officials have been explicit about the need for a fair and sustainable funding system that reflects and responds to the actual extent of deprivation and need,” said Michael Mordey.
“Lacking this, local authorities will persist to face impossible choices around which essential services to fund, and which to cut, to the disadvantage of their residents.”
One in five of local authorities have reduced or weakened social care provision in the last year, the survey revealed.
