Based on a recent poll of local authorities, English councils are planning to sell community centers, athletic facilities, and retail spaces as they bet on a rapid disposal of properties to balance the books.
Growing Financial Pressures Prompt Asset Sales
A coalition of councils for 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.
Local governments have in the past faced criticism for selling playing fields and land to shore up their budgets, but they argue they must continue to raise vital cash from property disposals or face insolvency.
The group said that a significant number of authorities seeking to raise money from a quick sale of assets represented “a distinct shift from 2024, when the majority (six in ten) of municipal officials stated they would focus on restructuring services and using financial reserves to weather increasing fiscal pressures.”
Detailed Cases of Proposed Sales
One local authority in southeast England said its asset disposal plan included the sale of a retail complex in a local town and a social club in another town to raise £20m over five years.
- A local golf course and business parks owned in Worcestershire and Suffolk, which all provide rental income for Medway council, will also be disposed of under the strategy.
Council Tax Increases and Wider Financial Strains
The survey of councils in the key cities group, which includes several urban centers, also found that over seven in ten of councils will need to raise council taxes next spring to address the rising cost of core provisions, increased rates of homelessness, and a longstanding accommodation deficit.
Medway council explained it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting creative strategies but some of these take time to deliver both improved services and cost efficiency,” said a council leader.
He continued: “There are demographic pressures which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Trends and Projections
A survey of regional authorities recently also found council budgets being strained by the growing number of young people and adults needing Send support.
A network of councils projected that council deficits will hit £4.4bn a year by 2029, as they struggle to manage increased demand.
Government officials have delayed planned reforms to the Send system until the coming year after a policy document setting out those reforms has been postponed.
Disadvantage and Financial Gaps
Based on the latest deprivation measures (the Index of Multiple Deprivation) for English councils, many participating urban areas were included in the most deprived in England.
- “Member cities like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” noted the study.
“While only a single urban area is among the top 10 for deprived neighbourhoods countrywide, urban areas are far more likely to be in the worst-off 20% of the nation. The data underscores the scale of difficulties facing local leaders across key cities in the next twelve months,” the report concluded.
“Council officials have been clear about the necessity for a equitable and lasting financial structure that accounts for and addresses the real levels of disadvantage and need,” stated Michael Mordey.
“Without this, local authorities will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their residents.”
One in five of local authorities have reduced or weakened care services in the past 12 months, the survey revealed.
