Based on a new poll of municipal councils, UK councils are preparing to sell social clubs, sports centres, and retail spaces as they rely on a rapid disposal of properties to balance the books.
Increasing Financial Challenges Prompt Asset Sales
A coalition of councils for second-tier cities in the UK reported that six out of ten of councils are planning to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have previously faced criticism for selling public land and land to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or declare themselves bankrupt.
The group noted that a high proportion of councils seeking to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of local leaders said they would prioritise restructuring services and using financial reserves to manage increasing fiscal pressures.”
Detailed Examples of Proposed Disposals
One local authority 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 £20m over five years.
- A local golf course and business parks held in Worcestershire and Suffolk, which all generate rent for the authority, will also be sold under the plan.
Council Tax Rises and Broader Financial Pressures
The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will have to increase local levies next April to cover the growing cost of essential services, higher levels of housing insecurity, and a persistent housing shortage.
The authority said it will proceed with asset sales after steep rises in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking creative strategies but some of these take time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “There are demographic pressures which will persist to increase the pressures we have. As a local government body, we had a drastic reduction in our central funding from over the past decade, which is very challenging.”
National Trends and Forecasts
Research of regional authorities this week further found local finances being stretched by the growing number of children and older individuals requiring Send support.
The County Councils Network projected that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Government officials have put off scheduled changes to the special educational needs framework until the coming year after a policy document setting out those changes was recently delayed.
Disadvantage and Funding Gaps
According to the most recent indices of deprivation (the Index of Multiple Deprivation) for English councils, many key cities members were among the most deprived in England.
- “Member cities like several major towns rank in the top 30 nationally under the 2025 deprivation indices,” noted the report.
“Although only a single urban area is in the top 10 for disadvantaged communities countrywide, urban areas are far more likely to be in the worst-off 20% of England. The data underscores the extent of difficulties facing local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Council officials have been clear about the need for a equitable and lasting funding system that reflects and addresses the actual extent of deprivation and demand,” said a council leader.
“Without this, councils will persist to face difficult decisions around which vital provisions to fund, and which to reduce, to the disadvantage of their communities.”
A fifth of local authorities have cut or compromised social care provision in the last year, the study found.
