According to a new survey of local authorities, UK councils are planning to sell social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
The Key Cities Group representing second-tier cities in England stated 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 previously come under fire for disposing of playing fields and land to support their finances, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.
This coalition said that a high proportion of councils seeking to generate funds from a quick sale of assets marked “a clear change from 2024, when the majority (60%) of municipal officials stated they would prioritise restructuring services and utilising savings to weather growing financial challenges.”
Specific Examples of Proposed Sales
One local authority in Kent announced its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to generate £20m over the next half-decade.
- A local golf course and commercial properties owned in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be disposed of under the plan.
Council Tax Rises and Broader Financial Pressures
This research of councils in the coalition, which includes several urban centers, further found that over seven in ten of authorities will need to raise council taxes next spring to address the growing cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
Medway council said it will press ahead with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting innovative approaches but certain measures take time to achieve both better provisions and financial savings,” said Vince Maple.
He added: “There are population challenges which will continue to add to the pressures we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Patterns and Projections
A survey of county councils recently also found council budgets being strained by the growing number of young people and adults needing special educational assistance.
The County Councils Network said that local shortfalls will hit £4.4bn a year by the end of the decade, as they grapple to manage increased demand.
Government officials have put off planned reforms to the Send system until next year after a white paper outlining those reforms was recently delayed.
Deprivation and Financial Shortfalls
According to the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, several key cities members were included in the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 across the country under the 2025 IMD measures,” noted the study.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, urban areas are much more prone to be in the worst-off 20% of England. The figures highlights the scale of challenges facing local leaders across key cities in the next twelve months,” the analysis added.
“Local government leaders have been explicit about the need for a fair and sustainable funding system that accounts for and addresses the actual extent of deprivation and need,” said Michael Mordey.
“Without this, councils will persist to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the detriment of their residents.”
A fifth of local authorities have reduced or weakened care services in the last year, the survey found.
