According to a latest poll of local authorities, English councils are preparing to offload social clubs, sports centres, and shopping arcades as they bet on a rapid disposal of properties to stabilize finances.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils representing major urban areas in the UK stated that six out of ten of local authorities are planning to dispose of properties to meet the rising costs of adult and children’s social care.
Councils have in the past faced criticism for disposing of playing fields and land to shore up their budgets, 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 fire sale of holdings represented “a distinct shift from 2024, when the largest share (six in ten) of local leaders said they would prioritise restructuring services and utilising savings to weather growing fiscal pressures.”
Specific Examples of Proposed Disposals
One local authority in Kent said its asset disposal plan included the disposal of a retail complex in a local town and a social club in another town to raise £20m over five years.
- A local golf course and commercial properties owned in two English counties, which all provide rental income for Medway council, will also be disposed of under the strategy.
Local Levy Rises and Broader Financial Pressures
This research of local authorities in the coalition, which covers several urban centers, also found that more than 70% of authorities will need to raise local levies next spring to address the growing cost of essential services, higher levels of housing insecurity, and a persistent accommodation deficit.
Medway council said it will press ahead with property disposals after steep rises in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.
“We are adopting innovative approaches but some of these require time to deliver both improved services and cost efficiency,” stated Vince Maple.
He added: “There are population challenges which will persist 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 Trends and Forecasts
A survey of regional authorities this week further found local finances being strained by the increasing figures of young people and adults needing Send support.
The County Councils Network said that council deficits will reach £4.4bn a year by the end of the decade, as they struggle to cope with increased demand.
Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper setting out those changes was recently delayed.
Disadvantage and Funding Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) for English councils, many key cities members were among the most disadvantaged in the country.
- “Participating urban centers like several major towns rank in the most deprived 30 across the country under the 2025 IMD measures,” noted the report.
“Although only one key city is among the ten most deprived for disadvantaged communities countrywide, urban areas are far more likely to be in the most deprived fifth of England. The figures highlights the scale of difficulties facing municipal officials across major urban centers in the coming year,” the report concluded.
“Local government leaders have been clear about the necessity for a equitable and lasting funding system that accounts for and responds to the real levels of disadvantage and demand,” stated a council leader.
“Lacking this, councils will continue to face impossible choices around which essential services to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of councils have cut or compromised social care provision in the last year, the study revealed.
