According to a new study of municipal councils, UK councils are planning to sell community centers, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of local authorities 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 selling public land and open spaces to support their finances, but they contend they must continue to generate essential revenue from property disposals or face insolvency.
The group noted that a significant number of authorities attempting to raise money from a fire sale of assets marked “a clear change from 2024, when the majority (six in ten) of local leaders stated they would focus on restructuring services and utilising financial reserves to weather growing financial challenges.”
Specific Examples of Planned Sales
Medway Council in Kent announced its property management strategy included the disposal of a retail complex in a local town and a community venue in another town to generate £20m over the next half-decade.
- A local golf course and commercial properties held in two English counties, which all generate rent for Medway council, will also be disposed of under the plan.
Local Levy Rises and Wider Fiscal Strains
This research of local authorities in the key cities group, which includes several urban centers, further found that over seven in ten of councils will need to increase local levies next spring to address the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.
The authority said it will proceed with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.
“We are taking innovative approaches but certain measures take time to achieve both better provisions and financial savings,” stated Vince Maple.
He continued: “We face population challenges which will continue to increase the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
National Patterns and Projections
Research of regional authorities recently further found council budgets being stretched by the growing number of young people and adults needing Send support.
A network of councils projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Government officials have put off scheduled changes to the Send system until next year after a policy document setting out those changes was recently delayed.
Deprivation and Financial Shortfalls
Based on the latest indices of deprivation (the Index of Multiple Deprivation) covering English councils, several key cities members were among the most disadvantaged in the country.
- “Participating urban centers like several major towns place in the most deprived 30 across the country under the 2025 IMD measures,” noted the study.
“While only one key city is in the top 10 for disadvantaged communities nationally, urban areas are far more likely to be in the most deprived fifth of England. The figures underscores the extent of difficulties facing local leaders across major urban centers in the next twelve months,” the analysis added.
“Council officials have been clear about the necessity for a equitable and lasting financial structure that accounts for and responds to the real levels of disadvantage and need,” said Michael Mordey.
“Lacking this, local authorities will persist to face impossible choices around which vital provisions to fund, and which to reduce, to the detriment of their residents.”
One in five of councils have cut or compromised care services in the past 12 months, the study revealed.
