According to a new study of local authorities, UK councils are planning to sell social clubs, sports centres, and shopping arcades as they rely on a rapid disposal of properties to balance the books.
Increasing Fiscal Pressures Prompt Asset Sales
The Key Cities Group for second-tier cities in England reported that six out of ten of local authorities are planning to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Councils have in the past faced criticism for disposing of playing fields and open spaces to shore up their budgets, but they contend they must continue to raise vital cash from asset sales or face insolvency.
This coalition noted that a significant number of authorities seeking to generate funds from a fire sale of holdings represented “a clear change from 2024, when the largest share (60%) of municipal officials said they would focus on restructuring services and utilising savings to manage growing financial challenges.”
Specific Examples of Proposed Sales
One local authority in southeast England announced its asset disposal plan featured the disposal of a retail complex in Rainham and a community venue in another town to generate £20m over five years.
- Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will also be sold under the strategy.
Council Tax Increases and Wider Fiscal Strains
The survey of local authorities in the coalition, which includes several urban centers, also found that over seven in ten of councils will have to increase council taxes next spring to address the growing cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.
The authority explained it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting creative strategies but some of these take time to achieve both improved services and cost efficiency,” said a council leader.
He added: “We face population challenges which will persist to increase the strains we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is very challenging.”
National Patterns and Forecasts
Research of county councils this week further found local finances being stretched by the increasing figures of young people and older individuals needing Send support.
A network of councils said that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they struggle to manage increased demand.
Government officials have put off scheduled changes to the special educational needs framework until next year after a policy document outlining those reforms was recently delayed.
Deprivation and Financial Gaps
According to the latest deprivation measures (IMD) covering UK local authorities, several key cities members were included in the most disadvantaged in England.
- “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,” noted the study.
“Although only one key city is in the ten most deprived for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of the nation. The figures underscores the scale of challenges facing municipal officials across key cities in the coming year,” the analysis added.
“Council officials have been clear about the need for a equitable and lasting financial structure that accounts for and responds to the actual extent of deprivation and need,” stated a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of local authorities have cut or compromised care services in the last year, the study revealed.
