According to a new poll of municipal councils, English councils are planning to sell social clubs, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.
Increasing Fiscal Challenges Prompt Asset Sales
A coalition of councils representing second-tier cities in the UK 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.
Councils have in the past come under fire for disposing of public land and land to support their finances, but they argue they must continue to raise vital cash from property disposals or face insolvency.
This coalition noted that a high proportion of authorities attempting to raise money from a quick sale of holdings represented “a clear change from 2024, when the majority (60%) of local leaders stated they would prioritise service redesigns and using financial reserves to manage increasing financial challenges.”
Detailed Examples of Proposed Disposals
Medway Council in southeast England announced its asset disposal plan included the disposal of a retail complex in a local town and a community venue in another town to raise 20 million pounds over the next half-decade.
- Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be disposed of under the strategy.
Local Levy Increases and Broader Fiscal Pressures
This research of councils in the key cities group, which covers several urban centers, further found that more than 70% of councils 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 explained it will press ahead with property disposals after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are taking innovative approaches but some of these require time to achieve both improved services and financial savings,” stated Vince Maple.
He added: “We face population challenges which will persist to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is extremely difficult.”
National Patterns and Forecasts
A survey of regional authorities this week further found local finances being strained by the growing number of children and older individuals requiring Send support.
The County Councils Network projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they struggle to manage increased demand.
Ministers have delayed scheduled changes to the special educational needs framework until the coming year after a policy document setting out those reforms has been postponed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (IMD) for UK local authorities, many participating urban areas were among the most disadvantaged in England.
- “Member cities like several major towns rank in the most deprived 30 nationally under the 2025 deprivation indices,” said the study.
“Although only a single urban area is among the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the most deprived fifth of England. The figures highlights the extent of challenges facing local leaders across key cities in the coming year,” the report concluded.
“Council officials have been clear about the need for a fair and sustainable financial structure that accounts for and addresses the actual extent of disadvantage and demand,” said a council leader.
“Without this, local authorities will continue to face impossible choices around which essential services to allocate spend to, and which to reduce, to the disadvantage of their communities.”
One in five of local authorities have cut or compromised care services in the past 12 months, the survey found.
