Based on a recent study of municipal councils, English councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils for second-tier cities in England stated that six out of ten of councils are planning to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have previously faced criticism for selling playing fields and land to support their budgets, but they contend they must continue to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of authorities attempting to raise money from a fire sale of holdings represented “a distinct shift from 2024, when the largest share (six in ten) of local leaders stated they would focus on restructuring services and using savings to manage increasing financial challenges.”
Detailed Examples of Proposed Disposals
One local authority in southeast England announced its asset disposal plan included the sale of a shopping centre in Rainham and a social club in another town to generate 20 million pounds over the next half-decade.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be sold under the strategy.
Local Levy Rises and Broader Fiscal Pressures
The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will have to increase council taxes next April to address the rising cost of core provisions, higher levels of housing insecurity, and a longstanding housing shortage.
The authority explained it will press ahead with asset sales after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting innovative approaches but some of these require time to deliver both improved services and financial savings,” said Vince Maple.
He added: “We face population challenges which will persist to add to 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
A survey of regional authorities recently further found council budgets being stretched by the growing number of children and adults requiring Send support.
The County Councils Network said that local shortfalls will hit £4.4bn a year by 2029, as they struggle to manage increased demand.
Ministers have put off planned reforms to the special educational needs framework until the coming year after a policy document outlining those changes has been postponed.
Deprivation and Financial Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) covering English councils, many participating urban areas were included in the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 across the country under the 2025 IMD measures,” said the study.
“While only one key city is among the top 10 for deprived neighbourhoods countrywide, cities are much more prone to be in the most deprived fifth of England. The data highlights the extent of difficulties facing local leaders across major urban centers in the coming year,” the report added.
“Local government leaders have been explicit about the need for a fair and sustainable funding system that accounts for and addresses the real levels of disadvantage and need,” said a council leader.
“Lacking this, local authorities will persist to face difficult decisions around which vital provisions to fund, and which to cut, to the detriment of their communities.”
A fifth of councils have reduced or weakened social care provision in the last year, the survey found.
