According to a latest study of local authorities, English councils are preparing to offload community centers, athletic facilities, and shopping arcades as they rely on a fire sale of properties to balance the books.
Growing Financial Challenges Drive Asset Sales
A coalition of councils representing second-tier cities in the UK reported that 60% of councils are planning to sell assets to cover the rising costs of adult and children’s social care.
Local governments have previously come under fire for disposing of public land and land to support their budgets, but they contend they must continue to raise vital cash from property disposals or face insolvency.
The group noted that a significant number of authorities attempting to generate funds from a fire sale of holdings represented “a distinct shift from 2024, when the majority (six in ten) of local leaders said they would prioritise service redesigns and using savings to manage growing fiscal pressures.”
Specific Cases of Planned Sales
One local authority in southeast England said its property management strategy included the disposal of a shopping centre in Rainham and a social club in another town to raise £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all generate rent for Medway council, will additionally be sold under the plan.
Local Levy Increases and Broader Fiscal Strains
The survey of local authorities in the coalition, which covers several urban centers, also found that more than 70% of councils will need to raise local levies next spring to cover the rising cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.
Medway council said it will proceed with asset sales 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 innovative approaches but some of these require time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “We face population challenges which will persist to add to the pressures we have. As a unitary authority, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”
Countrywide Trends and Forecasts
Research of regional authorities this week also found local finances being stretched by the increasing figures of young people and older individuals needing special educational assistance.
The County Councils Network said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Ministers have put off scheduled changes to the Send system until next year after a white paper setting out those changes has been postponed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (IMD) for English councils, several 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 most deprived 30 across the country under the 2025 deprivation indices,” said the study.
“Although 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 underscores the extent of difficulties confronting local leaders across key cities in the next twelve months,” the report added.
“Council officials have been clear about the need for a equitable and lasting financial structure that reflects and responds to the real levels of deprivation and need,” stated Michael Mordey.
“Without this, councils will persist to face difficult decisions around which vital provisions to fund, and which to reduce, to the detriment of their residents.”
A fifth of local authorities have reduced or weakened care services in the past 12 months, the study found.
