Based on a latest survey of local authorities, UK councils are planning to sell social clubs, sports centres, and shopping arcades as they bet on a fire sale of assets to balance the books.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils representing second-tier cities in England reported that 60% of councils are planning to dispose of properties to cover the escalating costs of adult and children’s social care.
Local governments have in the past faced criticism for selling public land and land to shore up their budgets, but they argue they must continue to raise vital cash from property disposals or face insolvency.
The group noted that a high proportion of authorities attempting to generate funds from a quick sale of assets represented “a clear change from 2024, when the majority (six in ten) of municipal officials said they would focus on service redesigns and utilising savings to manage growing financial challenges.”
Specific Cases of Planned Disposals
Medway Council in Kent announced its asset disposal plan included the sale of a shopping centre in a local town and a community venue in Rochester to generate £20m over the next half-decade.
- Gillingham golf club and business parks held in Worcestershire and Suffolk, which all provide rental income for Medway council, will also be disposed of under the plan.
Local Levy Increases and Broader Fiscal Pressures
The survey of councils in the key cities group, which includes several urban centers, further found that over seven in ten of authorities will have to increase local levies next spring to cover the rising cost of essential services, increased rates of homelessness, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, 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 population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Patterns and Forecasts
Research of county councils recently further found council budgets being stretched by the growing number of young people and older individuals requiring Send support.
A network of councils projected that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have delayed scheduled changes to the Send system until the coming year after a policy document setting out those reforms was recently delayed.
Deprivation and Funding Shortfalls
Based on the latest deprivation measures (IMD) for English councils, many participating urban areas were among the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 deprivation indices,” noted the study.
“While only one key city is among the ten most deprived for disadvantaged communities countrywide, cities are much more prone to be in the worst-off 20% of England. The data highlights the extent of challenges facing municipal officials 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 reflects and addresses the actual extent of disadvantage and need,” stated Michael Mordey.
“Lacking this, councils will persist to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the detriment of their communities.”
One in five of councils have reduced or weakened care services in the past 12 months, the survey revealed.
