Based on a new study of municipal councils, English councils are preparing to offload social clubs, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils for second-tier cities in England stated that 60% of local authorities are intending to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have previously 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.
The group noted that a significant number of councils seeking to raise money from a quick sale of assets represented “a clear change from 2024, when the majority (six in ten) of local leaders said they would focus on service redesigns and utilising financial reserves to weather increasing fiscal pressures.”
Specific Examples of Planned Disposals
One local authority in Kent announced its property management strategy included the disposal of a retail complex in Rainham and a community venue in another town to raise 20 million pounds over five years.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all provide rental income for the authority, will also be sold under the strategy.
Local Levy Rises and Wider Fiscal Pressures
This research of local authorities in the key cities group, which covers several urban centers, also found that over seven in ten of authorities will have to raise council taxes next April to cover the rising cost of core provisions, higher levels of homelessness, and a longstanding housing shortage.
Medway council said it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but some of these require time to deliver both better provisions and cost efficiency,” said a council leader.
He continued: “There are population challenges which will persist to add to the pressures we have. As a unitary authority, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”
Countrywide Trends and Forecasts
A survey of regional authorities recently also found council budgets being stretched by the increasing figures of children and adults needing special educational assistance.
The County Councils Network said that local shortfalls will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Ministers have delayed planned reforms to the Send system until next year after a white paper setting out those changes has been postponed.
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 disadvantaged in the country.
- “Member cities like several major towns place in the top 30 nationally under the 2025 deprivation indices,” noted the report.
“While only one key city is among the top 10 for deprived neighbourhoods nationally, cities are far more likely to be in the worst-off 20% of the nation. The data underscores the extent of challenges confronting municipal officials across major urban centers in the coming year,” the report added.
“Local government leaders have been clear about the need for a fair and sustainable funding system that accounts for and responds to the real levels of disadvantage and need,” stated a council leader.
“Lacking this, councils will persist to face impossible choices around which vital provisions to fund, and which to reduce, to the disadvantage of their residents.”
One in five of local authorities have cut or compromised care services in the last year, the study revealed.
