According to a new poll of local authorities, English councils are planning to sell social clubs, sports centres, and shopping arcades as they bet on a fire sale of properties to balance the books.
Growing Financial Challenges Prompt Asset Sales
The Key Cities Group for second-tier cities in England reported that six out of ten of councils are planning to sell assets to meet the rising costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of playing fields and land to shore up their finances, but they contend they must proceed to generate essential revenue from property disposals or declare themselves bankrupt.
This coalition said that a significant number of councils attempting to raise money from a fire sale of holdings represented “a clear change from 2024, when the largest share (60%) of local leaders said they would prioritise service redesigns and using savings to manage growing fiscal pressures.”
Specific Examples of Proposed Sales
Medway Council in Kent announced its asset disposal plan featured the disposal of a shopping centre in a local town and a community venue in another town to generate 20 million pounds over the next half-decade.
- A local golf course and commercial properties held in two English counties, which all generate rent for the authority, will additionally be disposed of under the strategy.
Council Tax Increases and Wider Financial Strains
This research of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of councils will have to increase council taxes next April to address the growing cost of essential services, higher levels of housing insecurity, and a persistent accommodation deficit.
Medway council said it will proceed with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are taking creative strategies but certain measures require time to deliver both improved services and financial savings,” 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 drastic reduction in our central funding from 2010-24, which is very challenging.”
Countrywide Patterns and Projections
Research of regional authorities this week also found council budgets being strained by the growing number of children and adults needing special educational assistance.
A network of councils said that local shortfalls will reach £4.4bn a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have delayed planned reforms to the Send system until the coming year after a policy document setting out those changes was recently delayed.
Deprivation and Funding Shortfalls
According to the latest indices of deprivation (the Index of Multiple Deprivation) for UK local authorities, several participating urban areas were included in the most deprived in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 IMD measures,” noted the study.
“Although only a single urban area is in the top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of England. The figures underscores the extent of difficulties facing municipal officials across key cities in the coming year,” the analysis concluded.
“Council officials have been clear about the necessity for a fair and sustainable financial structure that reflects and addresses the real levels of deprivation and demand,” said Michael Mordey.
“Lacking this, councils will continue to face difficult decisions around which vital provisions to fund, and which to reduce, to the disadvantage of their residents.”
A fifth of councils have cut or compromised social care provision in the last year, the survey found.
