Based on a new study of local authorities, English councils are planning 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 Prompt Asset Sales
A coalition of councils representing second-tier cities in the UK stated that six out of ten of councils are intending to sell assets to meet the escalating costs of adult and children’s social care.
Councils have previously faced criticism for disposing of public land and open spaces to shore up their budgets, but they contend they must proceed to generate essential revenue from property disposals or face insolvency.
This coalition said that a significant number of councils seeking to raise money from a quick sale of holdings marked “a distinct shift from 2024, when the largest share (six in ten) of local leaders stated they would prioritise service redesigns and utilising financial reserves to manage growing fiscal pressures.”
Specific Examples of Proposed Disposals
One local authority in southeast England said its property management strategy included the disposal of a shopping centre in a local town and a social club in Rochester to generate 20 million pounds over the next half-decade.
- A local golf course and commercial properties owned in two English counties, which all generate rent for the authority, will additionally be sold under the plan.
Council Tax Increases and Wider Fiscal Pressures
The survey of local authorities in the coalition, which includes several urban centers, further found that more than 70% of councils will need to raise local levies next spring to address the rising cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
The authority explained it will proceed with asset sales after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting creative strategies but some of these take time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “There are population challenges which will persist to add to the strains we have. As a unitary authority, we had a 91% cut in our central funding from over the past decade, which is extremely difficult.”
Countrywide Patterns and Projections
A survey of regional authorities recently further found council budgets being strained by the growing number of children and adults needing Send support.
The County Councils Network projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they struggle to manage increased demand.
Government officials 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 most recent deprivation measures (IMD) covering UK local authorities, many key cities members were among the most deprived in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 deprivation indices,” said the report.
“While only a single urban area is among the top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of the nation. The figures underscores the extent of difficulties confronting local leaders across major urban centers in the coming year,” the report concluded.
“Local government leaders have been clear about the need for a fair and sustainable financial structure that accounts for and responds to the actual extent of deprivation and demand,” stated Michael Mordey.
“Without this, local authorities will persist to face difficult decisions around which vital provisions to fund, and which to reduce, to the disadvantage of their residents.”
One in five of councils have reduced or weakened social care provision in the last year, the survey found.
