Based on a latest study of local authorities, English councils are preparing to sell community centers, sports centres, and shopping arcades as they rely on a rapid disposal of properties to stabilize finances.
Increasing Fiscal Pressures Prompt Asset Sales
The Key Cities Group representing second-tier cities in the UK reported that six out of ten of councils are intending to sell assets to meet the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of public land and open spaces to shore up their finances, but they contend they must proceed to raise vital cash from asset sales or face insolvency.
This coalition said that a significant number of councils seeking to raise money from a quick sale of holdings marked “a clear change from 2024, when the largest share (60%) of municipal officials said they would prioritise service redesigns and utilising financial reserves to weather growing financial challenges.”
Specific Examples of Planned Disposals
One local authority in southeast England announced its asset disposal plan included the disposal of a retail complex in Rainham and a social club in another town to generate 20 million pounds over five years.
- A local golf course and business parks held in two English counties, which all generate rent for Medway council, will additionally be sold under the strategy.
Local Levy Increases and Wider Financial Strains
The survey of local authorities in the key cities group, which includes several urban centers, also found that over seven in ten of councils will have to increase local levies next April to address the growing cost of essential services, higher levels of homelessness, and a longstanding housing shortage.
Medway council said it will proceed with asset sales after steep rises in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting innovative approaches but some of these take time to deliver both improved services and financial savings,” stated Vince Maple.
He continued: “There are population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
National Trends and Projections
A survey of regional authorities this week further found local finances being strained by the increasing figures of children and adults requiring Send support.
A network of councils projected that local shortfalls will hit £4.4bn a year by the end of the decade, as they grapple to cope with rising needs.
Ministers have delayed planned reforms to the Send system until the coming year after a policy document setting out those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) covering English councils, many key cities members were among the most disadvantaged in the country.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 across the country under the 2025 deprivation indices,” said the study.
“While only a single urban area is among the top 10 for deprived neighbourhoods nationally, cities are far more likely to be in the most deprived fifth of England. The data underscores the scale of difficulties facing local leaders across major urban centers in the next twelve months,” the report concluded.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and addresses the real levels of disadvantage and need,” said Michael Mordey.
“Without this, councils will continue to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the detriment of their residents.”
A fifth of councils have cut or compromised social care provision in the past 12 months, the survey revealed.
