Based on a new study of local authorities, English councils are preparing to sell social clubs, athletic facilities, and retail spaces as they bet on a fire sale of properties to balance the books.
Growing Financial Challenges Prompt Asset Sales
The Key Cities Group representing major urban areas in the UK stated that six out of ten of councils are planning to sell assets to cover the escalating costs of adult and children’s social care.
Local governments have in the past faced criticism for disposing of playing fields and open spaces to shore up their finances, but they argue they must proceed to generate essential revenue from asset sales or face insolvency.
This coalition noted that a significant number of councils seeking to raise money from a quick sale of holdings marked “a distinct shift from 2024, when the largest share (60%) of municipal officials said they would focus on restructuring services and utilising financial reserves to weather growing fiscal pressures.”
Specific Examples of Planned Sales
One local authority in Kent announced its asset disposal plan included the sale of a retail complex in Rainham and a social club in Rochester to raise £20m over five years.
- A local golf course and business parks owned in two English counties, which all provide rental income for Medway council, will also be disposed of 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 over seven in ten of authorities will need to raise local levies next spring to cover the growing cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
Medway council said it will press ahead with property disposals after steep rises in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking innovative approaches but some of these take time to deliver both better provisions and financial savings,” said Vince Maple.
He added: “We face population challenges which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is extremely difficult.”
Countrywide Patterns and Forecasts
A survey of regional authorities this week also found local finances being stretched by the growing number of young people and adults requiring Send support.
The County Councils Network projected that local shortfalls will reach £4.4bn a year by the end of the decade, as they grapple to manage increased demand.
Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper setting out those reforms has been postponed.
Disadvantage and Financial Shortfalls
Based on the latest deprivation measures (the Index of Multiple Deprivation) for English councils, several participating urban areas were included in the most deprived in England.
- “Member cities like several major towns place in the top 30 nationally under the 2025 deprivation indices,” said 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 scale of difficulties facing local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Local government leaders have been clear about the necessity for a equitable and lasting financial structure that reflects and responds to the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, local authorities will continue to face difficult decisions around which vital provisions to fund, and which to cut, to the disadvantage of their communities.”
One in five of councils have reduced or weakened social care provision in the last year, the study revealed.
