Based on a recent study of local authorities, English councils are planning to offload social clubs, athletic facilities, and retail spaces as they bet on a fire sale of assets to balance the books.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of councils are intending to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of public land and land to support their finances, but they contend they must continue to generate essential revenue from property disposals or face insolvency.
This coalition noted that a significant number of councils seeking to generate funds from a quick sale of assets marked “a clear change from 2024, when the majority (60%) of local leaders stated they would prioritise restructuring services and using savings to manage growing financial challenges.”
Detailed Examples of Planned Sales
One local authority in Kent announced its asset disposal plan included the disposal of a shopping centre in a local town and a community venue in another town to raise 20 million pounds over five years.
- A local golf course and commercial properties owned in two English counties, which all generate rent for Medway council, will also be disposed of under the strategy.
Council Tax Increases and Broader Financial Pressures
The survey of councils in the key cities group, which includes several urban centers, also found that more than 70% of authorities will need to raise local levies next April to address the growing cost of essential services, increased rates of housing insecurity, and a longstanding housing shortage.
Medway council explained it will press ahead with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting innovative approaches but some of these take time to deliver both better provisions and cost efficiency,” said Vince Maple.
He continued: “There are population challenges which will persist to increase the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is extremely difficult.”
National Trends and Projections
Research of regional authorities recently also found local finances being strained by the increasing figures of children and adults needing special educational assistance.
The County Councils Network projected that council deficits will reach £4.4bn a year by 2029, as they grapple to manage increased demand.
Government officials have delayed scheduled changes to the Send system until next year after a policy document outlining those reforms was recently delayed.
Deprivation and Funding Gaps
According to the most recent indices of deprivation (IMD) covering English councils, many participating urban areas were among the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 deprivation indices,” noted 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 worst-off 20% of England. The figures highlights the scale of challenges confronting local leaders across major urban centers in the next twelve months,” the report added.
“Council officials have been explicit about the necessity for a equitable and lasting financial structure that accounts for and addresses the actual extent of disadvantage and demand,” 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 care services in the past 12 months, the survey revealed.
