Based on a latest study of municipal councils, English councils are planning to sell social clubs, sports centres, and shopping arcades as they bet on a fire sale of assets to stabilize finances.
Growing Financial Pressures Drive Asset Sales
The Key Cities Group for major urban areas in England reported that six out of ten of local authorities are intending to dispose of properties to cover the rising costs of adult and children’s social care.
Local governments have in the past come under fire for disposing of public land and land to support their budgets, but they contend they must proceed to raise vital cash from asset sales or face insolvency.
This coalition noted that a high proportion of authorities attempting to raise money from a quick sale of assets represented “a clear change from 2024, when the majority (six in ten) of municipal officials stated they would prioritise service redesigns and utilising savings to manage growing financial challenges.”
Specific Examples of Planned Sales
Medway Council in Kent said its asset disposal plan included the sale of a shopping centre in a local town and a social club in Rochester to generate £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for the authority, will also be sold under the plan.
Council Tax Rises and Wider Financial Pressures
The survey of local authorities in the key cities group, which includes several urban centers, also found that more than 70% of authorities will need to raise local levies next April to address the rising cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.
Medway council said it will press ahead with property disposals after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking creative strategies but certain measures take time to achieve both better provisions and cost efficiency,” said a council leader.
He continued: “There are demographic pressures which will continue to add to the strains we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Trends and Projections
Research of regional authorities this week further found local finances being strained by the increasing figures of young people and older individuals requiring special educational assistance.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they grapple to manage increased demand.
Ministers have delayed planned reforms to the Send system until next year after a white paper setting out those reforms has been postponed.
Deprivation and Financial Gaps
According to the most recent deprivation measures (IMD) covering UK local authorities, several participating urban areas were among the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 IMD measures,” noted the study.
“While only one key city is in the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the most deprived fifth of England. The figures highlights the extent of difficulties facing municipal officials across key cities in the coming year,” the analysis added.
“Council officials have been clear about the need for a fair and sustainable financial structure that reflects and responds to the real levels of deprivation and need,” stated Michael Mordey.
“Without this, local authorities will persist to face difficult decisions around which essential services to allocate spend to, and which to cut, to the detriment of their residents.”
A fifth of local authorities have reduced or weakened care services in the past 12 months, the study revealed.
