According to a new poll of local authorities, UK councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of properties to stabilize finances.
Growing Fiscal Pressures Drive Asset Sales
A coalition of councils for second-tier cities in England stated that six out of ten of councils are intending to sell assets to meet the escalating costs of adult and children’s social care.
Councils have in the past come under fire for selling public land and open spaces to shore up their finances, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
The group noted that a significant number of councils attempting to generate funds from a fire sale of assets represented “a distinct shift from 2024, when the largest share (60%) of local leaders said they would prioritise service redesigns and using financial reserves to manage growing fiscal pressures.”
Detailed Cases of Planned Sales
One local authority in southeast England said its property management strategy featured the disposal of a shopping centre in Rainham and a social club in Rochester to generate £20m over the next half-decade.
- A local golf course and business parks held in two English counties, which all generate rent for Medway council, will additionally be disposed of under the strategy.
Council Tax Increases and Broader Financial Pressures
This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of councils will have to increase council taxes next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council explained it will press ahead with asset sales after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are taking creative strategies but certain measures take time to achieve both better provisions and financial savings,” said Vince Maple.
He added: “There are population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
Countrywide Trends and Forecasts
A survey of county councils this week also found council budgets being stretched by the growing number of young people and adults requiring special educational assistance.
The County Councils Network 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 policy document setting out those changes was recently delayed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (IMD) for UK local authorities, many key cities members were included in the most disadvantaged in England.
- “Participating urban centers like several major towns rank in the most deprived 30 nationally under the 2025 IMD measures,” noted the study.
“While only one key city is in the top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the worst-off 20% of the nation. The data highlights the extent of difficulties confronting local leaders across key cities in the coming year,” 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 disadvantage and demand,” stated Michael Mordey.
“Without this, local authorities will continue to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their residents.”
A fifth of local authorities have cut or compromised social care provision in the last year, the study revealed.
