Based on a new study of municipal councils, English councils are preparing to sell social clubs, athletic facilities, and retail spaces as they rely on a fire sale of properties to balance the books.
Growing Financial Pressures Drive Asset Sales
A coalition of councils representing second-tier cities in England stated that six out of ten of local authorities are planning to sell assets to cover the rising costs of adult and children’s social care.
Local governments have previously faced criticism for disposing of playing fields and land to support their budgets, 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 attempting to raise money from a quick sale of assets marked “a distinct shift from 2024, when the largest share (60%) of municipal officials stated they would prioritise restructuring services and using savings to weather growing financial challenges.”
Detailed Cases of Planned Disposals
Medway Council in southeast England said its property management strategy included the disposal of a shopping centre in Rainham and a community venue in another town to raise £20m over the next half-decade.
- Gillingham golf club and commercial properties held in two English counties, which all provide rental income for Medway council, will also be sold under the strategy.
Local Levy Increases and Broader Fiscal 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 local levies next April to address the rising cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council explained it will press ahead with property disposals after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” stated Vince Maple.
He continued: “We face population challenges which will continue to increase the pressures we have. As a unitary authority, we had a drastic reduction in our central funding from over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
A survey of county councils recently also found local finances being strained by the growing number of young people and adults requiring special educational assistance.
A network of councils said that council deficits will hit 4.4 billion pounds a year by 2029, as they grapple to cope with rising needs.
Ministers have delayed planned reforms to the special educational needs framework until the coming year after a policy document outlining those changes has been postponed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (the Index of Multiple Deprivation) covering UK local authorities, many key cities members were included in the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 deprivation indices,” noted the study.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, cities are much more prone to be in the most deprived fifth of England. The data highlights the scale of difficulties confronting local leaders across key cities in the next twelve months,” the analysis added.
“Local government leaders have been clear about the need for a fair and sustainable financial structure that reflects and addresses the actual extent of deprivation and demand,” said Michael Mordey.
“Without this, councils will continue to face impossible choices around which essential services to fund, and which to reduce, to the detriment of their residents.”
One in five of councils have cut or compromised social care provision in the last year, the survey revealed.
