Based on a new poll of local authorities, English councils are preparing to sell social clubs, sports centres, and shopping arcades as they rely on a rapid disposal of assets to stabilize finances.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils for second-tier cities in the UK stated that 60% of local authorities are intending to dispose of properties to meet the escalating costs of adult and children’s social care.
Local governments have previously faced criticism for disposing of public land and land to shore up their finances, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
This coalition noted that a significant number of authorities attempting to generate funds from a fire sale of holdings represented “a clear change from 2024, when the largest share (six in ten) of municipal officials stated they would prioritise restructuring services and utilising financial reserves to weather increasing financial challenges.”
Specific Examples of Proposed Disposals
One local authority in Kent announced its property management strategy featured the sale of a shopping centre in a local town and a community venue in another town to raise 20 million pounds over five years.
- Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will also be sold under the plan.
Council Tax Rises and Broader Financial Pressures
This research of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of authorities will need to raise council taxes next spring to address the rising cost of essential services, increased rates of homelessness, and a longstanding accommodation deficit.
The authority said it will proceed with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “There are population challenges which will continue to increase the pressures we have. As a unitary authority, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
Research of regional authorities recently further found local finances being stretched by the growing number of children and older individuals needing special educational assistance.
The County Councils Network said that local shortfalls will hit £4.4bn a year by 2029, as they grapple to cope with rising needs.
Government officials have put off planned reforms to the Send system until the coming year after a policy document setting out those reforms has been postponed.
Disadvantage and Funding Gaps
Based on the most recent indices of deprivation (IMD) covering UK local authorities, several key cities members were among the most deprived in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 across the country under the 2025 deprivation indices,” noted the study.
“Although only one key city is among the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the worst-off 20% of England. The data underscores the extent of difficulties confronting local leaders across major urban centers in the coming year,” the analysis added.
“Council officials have been clear about the need for a fair and sustainable financial structure that reflects and responds to the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to allocate spend to, and which to reduce, to the detriment of their communities.”
One in five of local authorities have cut or compromised care services in the past 12 months, the study revealed.
