Based on a latest survey of municipal councils, English councils are planning to offload community centers, sports centres, and shopping arcades as they bet on a rapid disposal of assets to stabilize finances.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in the UK reported that 60% of councils are intending to sell assets to meet the rising costs of social services for vulnerable individuals.
Councils have previously faced criticism for selling public land and open spaces 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 councils attempting to raise money from a quick sale of assets represented “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would focus on restructuring services and utilising savings to weather increasing fiscal pressures.”
Specific Examples of Proposed Disposals
One local authority in Kent said its asset disposal plan featured the sale of a shopping centre in a local town and a community venue in Rochester to raise 20 million pounds over the next half-decade.
- A local golf course and commercial properties held in two English counties, which all provide rental income for the authority, will also be sold under the plan.
Local Levy Increases and Wider Financial Strains
The survey of local authorities in the key cities group, 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 essential services, increased rates of homelessness, and a longstanding accommodation deficit.
Medway council explained it will proceed with asset sales after steep rises in the cost of children services, support for vulnerable learners, adult social care, and temporary accommodation.
“We are adopting creative strategies but certain measures require time to deliver both better provisions and cost efficiency,” stated a council leader.
He continued: “There are population challenges which will continue to increase the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Patterns and Projections
A survey of county councils this week also found council budgets being stretched by the increasing figures of young people and adults requiring special educational assistance.
The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by the end of the decade, as they struggle to cope with rising needs.
Ministers have delayed planned reforms to the special educational needs framework until the coming year after a policy document setting out those changes was recently delayed.
Deprivation and Funding Shortfalls
Based on the latest indices of deprivation (IMD) for UK local authorities, many key cities members were among the most disadvantaged in England.
- “Member cities like several major towns place in the most deprived 30 nationally under the 2025 IMD measures,” said the report.
“While only one key city is in the top 10 for deprived neighbourhoods nationally, cities are much more prone to be in the worst-off 20% of the nation. The data highlights the extent of difficulties confronting local leaders across major urban centers in the coming year,” the report added.
“Council officials have been explicit about the necessity for a fair and sustainable funding system that accounts for and addresses the real levels of deprivation and demand,” said Michael Mordey.
“Lacking this, local authorities will continue to face difficult decisions around which essential services to allocate spend to, and which to reduce, to the disadvantage of their residents.”
A fifth of councils have cut or compromised care services in the last year, the study found.
