Based on a latest survey of local authorities, English councils are planning to offload community centers, athletic facilities, and retail spaces as they rely on a rapid disposal of properties to balance the books.
Growing Financial Challenges Drive Asset Sales
A coalition of councils for second-tier cities in the UK reported that six out of ten of councils are planning to sell assets to meet the escalating costs of social services for vulnerable individuals.
Councils have previously faced criticism for disposing of playing fields and open spaces to support their finances, but they argue they must continue to raise vital cash from property disposals or face insolvency.
The group noted that a significant number of authorities attempting to raise money from a fire sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of local leaders stated they would focus on restructuring services and using financial reserves to weather growing financial challenges.”
Specific Cases of Planned Disposals
One local authority in southeast England announced its property management strategy featured 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.
- A local golf course and commercial properties owned 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
The survey of councils in the key cities group, which covers several urban centers, also found that more than 70% of authorities will need to increase council taxes next spring to address the rising cost of essential services, higher levels of housing insecurity, and a persistent housing shortage.
The authority said it will press ahead with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting creative strategies but some of these take time to achieve both improved services and cost efficiency,” 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 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Patterns and Forecasts
A survey of county councils recently also found local finances being stretched by the increasing figures of young people and adults needing Send support.
The County Councils Network said that local shortfalls will reach £4.4bn a year by 2029, as they grapple to manage increased demand.
Ministers have delayed scheduled changes to the special educational needs framework until next year after a white paper setting out those changes has been postponed.
Deprivation and Financial Shortfalls
According to the most recent deprivation measures (the Index of Multiple Deprivation) for UK local authorities, several key cities members were included in the most disadvantaged in the country.
- “Member cities like several major towns rank in the most deprived 30 across the country under the 2025 deprivation indices,” said the study.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, cities are much more prone to be in the most deprived fifth of England. The figures underscores the extent of challenges facing municipal officials across major urban centers in the next twelve months,” the report concluded.
“Council officials have been clear about the need for a equitable and lasting financial structure that reflects and addresses the real levels of deprivation and need,” stated Michael Mordey.
“Lacking this, councils will continue to face impossible choices around which essential services to fund, and which to reduce, to the detriment of their residents.”
A fifth of councils have cut or compromised care services in the past 12 months, the survey found.
