According to a latest survey of local authorities, English councils are planning to sell social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of assets to balance the books.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils representing second-tier cities in England reported that 60% of councils are intending to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Councils have previously come under fire for disposing of playing fields and open spaces to support their finances, but they argue 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 raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of local leaders stated they would prioritise restructuring services and using savings to manage increasing fiscal pressures.”
Detailed Cases of Proposed Sales
One local authority in Kent announced its property management strategy featured the disposal of a retail complex in Rainham and a community venue in Rochester to generate £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all generate rent for the authority, will also be sold under the plan.
Council Tax Rises and Broader Fiscal Pressures
This research of local authorities in the coalition, which covers several urban centers, also found that over seven in ten of councils will need to raise council taxes next April to cover the rising cost of core provisions, higher levels of housing insecurity, and a persistent accommodation deficit.
The authority explained it will proceed with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are adopting creative strategies but certain measures take time to deliver both improved services and cost efficiency,” said a council leader.
He continued: “We face population challenges which will continue to increase the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
National Trends and Projections
A survey of regional authorities this week also found council budgets being strained by the growing number of children and adults needing Send support.
A network of councils projected that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with increased demand.
Ministers have delayed planned reforms to the Send system until the coming year after a policy document outlining those changes has been postponed.
Deprivation and Funding Shortfalls
Based on the latest indices of deprivation (IMD) covering English councils, several participating urban areas were among the most deprived in England.
- “Participating urban centers like several major towns rank in the most deprived 30 across the country under the 2025 deprivation indices,” noted the report.
“Although only one key city is among the ten most deprived for disadvantaged communities countrywide, cities are much more prone to be in the most deprived fifth of England. The data underscores the extent of challenges facing municipal officials across major urban centers in the next twelve months,” the report concluded.
“Local government leaders have been clear about the necessity for a fair and sustainable funding system that accounts for and responds to the real levels of deprivation and need,” said Michael Mordey.
“Lacking this, local authorities will continue to face difficult decisions around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
A fifth of local authorities have reduced or weakened social care provision in the last year, the study revealed.
