According to a latest survey of local authorities, UK councils are preparing to sell social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of assets to stabilize finances.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of councils are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.
Local governments have in the past come under fire for disposing of playing fields and open spaces to shore up their finances, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
The group noted that a high proportion of councils attempting to raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (60%) of local leaders said they would focus on service redesigns and using savings to weather increasing financial challenges.”
Specific Examples of Planned Disposals
Medway Council in southeast England said its asset disposal plan included the disposal of a shopping centre in Rainham and a community venue in Rochester to raise 20 million pounds over five years.
- Gillingham golf club and business parks owned in two English counties, which all generate rent for the authority, will also be sold under the strategy.
Local Levy Rises and Wider Fiscal Pressures
This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to raise council taxes next spring to cover the growing cost of essential services, increased rates of homelessness, and a persistent accommodation deficit.
The authority explained it will press ahead with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting creative strategies but certain measures require time to achieve both better provisions and cost efficiency,” said Vince Maple.
He continued: “There are demographic pressures which will continue to increase the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from over the past decade, which is extremely difficult.”
National Patterns and Forecasts
Research of county councils this week also found local finances being strained by the growing number of children and older individuals requiring special educational assistance.
The County Councils Network said that council deficits will reach £4.4bn a year by 2029, as they struggle to manage increased demand.
Government officials have put off scheduled changes to the Send system until next year after a white paper setting out those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (IMD) for UK local authorities, several key cities members were among the most deprived in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 IMD measures,” said the report.
“While only one key city is among the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the most deprived fifth of England. The figures highlights the extent of difficulties facing municipal officials across major urban centers in the coming year,” the report concluded.
“Local government leaders have been explicit about the necessity for a fair and sustainable financial structure that accounts for and addresses the actual extent of disadvantage and need,” stated a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
A fifth of councils have reduced or weakened social care provision in the past 12 months, the study revealed.
