Based on a recent study of local authorities, English councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a fire sale of properties to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils representing second-tier cities in England reported that 60% of councils are planning to sell assets to meet the escalating costs of adult and children’s social care.
Councils have previously faced criticism for disposing of playing fields and open spaces to support their budgets, but they contend they must continue to raise vital cash from property disposals or declare themselves bankrupt.
The group noted that a high proportion of authorities attempting to generate funds from a fire sale of assets represented “a distinct shift from 2024, when the largest share (60%) of municipal officials stated they would prioritise restructuring services and utilising savings to weather growing financial challenges.”
Specific Examples of Proposed Disposals
Medway Council in southeast England announced its asset disposal plan included the disposal of a retail complex in Rainham and a community venue in Rochester to raise £20m over five years.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all provide rental income for Medway council, will also be sold under the strategy.
Local Levy Rises and Broader Financial Strains
The survey of local authorities in the coalition, which includes several urban centers, also found that more than 70% of councils will need to raise council taxes next spring to address the growing cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
The authority said it will proceed with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures take time to achieve both better provisions and cost efficiency,” stated Vince Maple.
He continued: “There are population challenges which will persist to increase the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Trends and Projections
Research of regional authorities this week further found council budgets being strained by the growing number of children and older individuals requiring Send support.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by the end of the decade, as they grapple to manage rising needs.
Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper outlining those changes was recently delayed.
Disadvantage and Financial Gaps
According to the most recent deprivation measures (IMD) for UK local authorities, many key cities members were among the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 deprivation indices,” said the report.
“Although only a single urban area is among the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The data underscores the extent of difficulties facing local leaders across key cities in the next twelve months,” the report added.
“Council officials have been clear about the necessity for a fair and sustainable financial structure that accounts for and addresses the actual extent of disadvantage and demand,” stated Michael Mordey.
“Without this, local authorities will persist to face impossible choices around which vital provisions to fund, and which to reduce, to the disadvantage of their residents.”
A fifth of local authorities have cut or compromised care services in the last year, the survey revealed.
