According to a new survey of municipal councils, UK councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to stabilize finances.
Growing Financial Challenges 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.
Local governments have previously faced criticism for selling playing fields and open spaces to shore up their budgets, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.
The group noted that a significant number of councils seeking to raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (60%) of municipal officials said they would prioritise restructuring services and using financial reserves to manage increasing financial challenges.”
Detailed Cases of Proposed Disposals
One local authority in Kent said its asset disposal plan included the sale of a retail complex in Rainham and a community venue in another town to generate £20m over the next half-decade.
- A local golf course and business parks held in two English counties, which all provide rental income for the authority, will additionally be sold under the strategy.
Local Levy Rises and Wider Fiscal Strains
The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of authorities will need to raise local levies next April to cover the growing cost of essential services, increased rates of homelessness, and a longstanding accommodation deficit.
Medway council said it will press ahead with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but certain measures take time to achieve both improved services and cost efficiency,” stated a council leader.
He continued: “We face population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is very challenging.”
National Trends and Projections
Research of county councils this week also found council budgets being strained by the growing number of young people and older individuals needing special educational assistance.
A network of councils projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they struggle to manage rising needs.
Ministers have put off scheduled changes to the special educational needs framework until the coming year after a white paper setting out those changes has been postponed.
Deprivation and Funding Shortfalls
Based on the most recent indices of deprivation (IMD) covering English councils, many key cities members were among the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 IMD measures,” noted the study.
“Although only one key city is in the top 10 for deprived neighbourhoods nationally, cities are far more likely to be in the most deprived fifth of the nation. The data highlights the scale of challenges confronting municipal officials across key cities in the next twelve months,” the report added.
“Local government leaders have been explicit about the need for a equitable and lasting funding system that accounts for and addresses the actual extent of deprivation and need,” said Michael Mordey.
“Lacking this, local authorities will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of councils have cut or compromised social care provision in the past 12 months, the study revealed.
