Based on a new survey of local authorities, English councils are preparing to sell community centers, athletic facilities, and retail spaces as they rely on a rapid disposal of assets to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils for major urban areas in the UK stated that six out of ten of councils are intending to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Councils have in the past faced criticism for disposing of public land and open spaces to support their finances, but they argue they must proceed to raise vital cash from asset sales or face insolvency.
This coalition said that a high proportion of authorities seeking to generate funds from a quick sale of assets represented “a distinct shift from 2024, when the majority (60%) of local leaders said they would focus on restructuring services and using savings to weather increasing fiscal pressures.”
Detailed Cases of Planned Disposals
Medway Council 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 raise £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all generate rent for Medway council, will additionally be disposed of under the plan.
Council Tax Increases and Broader Financial Strains
The survey of local authorities in the key cities group, which includes several urban centers, further found that over seven in ten of authorities will have to increase local levies next April to address the rising cost of core provisions, higher levels of homelessness, 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, adult social care, and temporary accommodation.
“We are taking creative strategies but some of these take time to deliver both improved services and cost efficiency,” stated a council leader.
He added: “There are population challenges which will persist to add to the strains we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is extremely difficult.”
Countrywide Trends and Projections
A survey of county councils this week also found local finances being stretched by the growing number of children and older individuals needing Send support.
A network of councils projected that council deficits will hit £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 white paper outlining those changes was recently delayed.
Deprivation and Financial Gaps
According to the most recent indices of deprivation (IMD) for UK local authorities, many key cities members were among the most disadvantaged in the country.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 deprivation indices,” said the report.
“While only a single urban area is among the ten most deprived for deprived neighbourhoods countrywide, urban areas are much more prone to be in the worst-off 20% of England. The figures highlights the extent of difficulties confronting local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Council officials have been clear about the necessity for a fair and sustainable funding system that reflects and responds to the actual extent of deprivation and need,” said Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to allocate spend to, and which to cut, to the disadvantage of their residents.”
A fifth of local authorities have reduced or weakened care services in the last year, the study revealed.
