According to a new survey of local authorities, UK councils are planning to sell social clubs, athletic facilities, and retail spaces as they rely on a rapid disposal of properties to balance the books.
Growing Fiscal Challenges Prompt Asset Sales
The Key Cities Group representing second-tier cities in England reported that 60% of councils are planning to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have in the past come under fire for disposing of public land and open spaces to support their finances, but they contend they must proceed to raise vital cash from property disposals or declare themselves bankrupt.
This coalition noted that a high proportion of authorities attempting to generate funds from a fire sale of holdings represented “a clear change from 2024, when the majority (60%) of municipal officials stated they would focus on service redesigns and utilising savings to manage increasing financial challenges.”
Specific Examples of Proposed Disposals
One local authority in southeast England announced its property management strategy featured the sale of a shopping centre in Rainham and a social club in another town to raise £20m over the next half-decade.
- Gillingham golf club and commercial properties owned in Worcestershire and Suffolk, which all provide rental income for Medway council, will also be sold under the strategy.
Local Levy Increases and Wider Fiscal Strains
The survey of councils in the key cities group, which covers several urban centers, further found that more than 70% of councils will have to increase council taxes next April to cover the rising cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
Medway council said it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” stated Vince Maple.
He added: “We face population challenges which will continue 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 Trends and Projections
Research of regional authorities this week further found local finances being strained by the increasing figures of young people and adults needing Send support.
A network of councils projected that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Government officials have delayed planned reforms to the Send system until the coming year after a white paper setting out those changes has been postponed.
Disadvantage and Financial Shortfalls
According to the most recent deprivation measures (IMD) for English councils, many key cities members were included in the most disadvantaged in England.
- “Participating urban centers like several major towns place in the most deprived 30 across the country under the 2025 deprivation indices,” said the study.
“Although only a single urban area is among the top 10 for disadvantaged communities countrywide, urban areas are far more likely to be in the most deprived fifth of England. The data underscores the extent of difficulties facing local leaders across key cities in the coming year,” the analysis concluded.
“Local government leaders have been clear about the necessity for a equitable and lasting financial structure that accounts for and responds to the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, councils will continue to face impossible choices around which essential services to allocate spend to, and which to cut, to the detriment of their communities.”
A fifth of local authorities have reduced or weakened social care provision in the past 12 months, the study revealed.
