Based on a recent survey of local authorities, English councils are planning to sell community centers, athletic facilities, and retail spaces as they bet on a rapid disposal of assets to stabilize finances.
Growing Financial Challenges Prompt Asset Sales
The Key Cities Group representing second-tier cities in England reported that 60% of local authorities are intending to dispose of properties to meet the escalating costs of adult and children’s social care.
Local governments have previously faced criticism for disposing of playing fields and open spaces to shore up their finances, but they argue they must continue to generate essential revenue from asset sales or face insolvency.
This coalition said that a significant number of authorities seeking to generate funds from a quick sale of assets marked “a clear change from 2024, when the largest share (60%) of local leaders stated they would focus on restructuring services and using financial reserves to weather growing fiscal pressures.”
Specific Examples of Proposed Disposals
Medway Council in southeast England announced its property management strategy featured the disposal of a retail complex in Rainham and a community venue in another town to raise 20 million pounds over five years.
- Gillingham golf club and business parks held in two English counties, which all generate rent for Medway council, will also be sold under the strategy.
Council Tax Rises and Wider Financial Strains
The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to raise council taxes next April to address the growing cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.
The authority said it will press ahead with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting innovative approaches but certain measures require time to achieve both improved services and cost efficiency,” said a council leader.
He continued: “There are population challenges which will persist to add to the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”
National Trends and Projections
A survey of regional authorities recently also found council budgets being stretched by the increasing figures of children and older individuals requiring special educational assistance.
A network of councils projected that council deficits will reach £4.4bn a year by the end of the decade, as they struggle to manage rising needs.
Government officials have delayed planned reforms to the Send system until next year after a white paper outlining those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (IMD) for English councils, several participating urban areas were among the most deprived in the country.
- “Participating urban centers like several major towns place in the most deprived 30 nationally under the 2025 IMD measures,” noted the study.
“While only one key city is in the top 10 for deprived neighbourhoods countrywide, cities are far more likely to be in the worst-off 20% of the nation. The figures highlights the scale of difficulties facing local leaders across major urban centers in the coming year,” the analysis added.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and addresses the real levels of disadvantage and need,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to fund, and which to cut, to the detriment of their residents.”
One in five of councils have reduced or weakened social care provision in the past 12 months, the study found.
