Based on a recent study of local authorities, English councils are preparing to sell social clubs, athletic facilities, and retail spaces as they bet on a rapid disposal of assets to balance the books.
Growing Fiscal Challenges Prompt Asset Sales
The Key Cities Group representing second-tier cities in England reported that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Local governments have previously faced criticism for selling playing fields and open spaces to support their budgets, but they contend they must proceed to raise vital cash from asset sales or face insolvency.
The group noted that a high proportion of authorities seeking to raise money from a quick sale of holdings marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials stated they would prioritise restructuring services and utilising savings to manage increasing financial challenges.”
Specific Examples of Proposed Sales
Medway Council in Kent said its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to raise £20m over five years.
- A local golf course and business parks held in Worcestershire and Suffolk, which all provide rental income for the authority, 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 includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will need to raise council taxes next spring to address the growing cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.
The authority said it will proceed with asset sales after steep rises in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking creative strategies but some of these take time to achieve both improved services and financial savings,” said Vince Maple.
He added: “There are demographic pressures which will persist to add to the strains we have. As a local government body, 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 county councils this week also found local finances being stretched by the growing number of children and older individuals needing Send support.
A network of councils projected that local shortfalls will hit £4.4bn a year by 2029, as they grapple to manage rising needs.
Government officials have put off planned reforms to the special educational needs framework until the coming year after a white paper setting out those changes was recently delayed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (the Index of Multiple Deprivation) covering UK local authorities, several key cities members were among the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 IMD measures,” noted the study.
“While only one key city is among the top 10 for disadvantaged communities countrywide, urban areas are far more likely to be in the most deprived fifth of the nation. The data highlights the extent of challenges confronting local leaders across key cities in the next twelve months,” the report added.
“Council officials have been explicit about the necessity for a fair and sustainable financial structure that reflects and addresses the actual extent of disadvantage and need,” said a council leader.
“Lacking this, councils will persist to face difficult decisions around which essential services to fund, and which to reduce, to the detriment of their communities.”
One in five of councils have cut or compromised social care provision in the past 12 months, the study revealed.
