Based on a recent poll of local authorities, UK councils are preparing to offload community centers, sports centres, and shopping arcades as they bet on a fire sale of assets to stabilize finances.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England reported that 60% of local authorities are planning to sell assets to meet the escalating costs of social services for vulnerable individuals.
Local governments have previously faced criticism for selling playing fields and open spaces to support their finances, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a high proportion of authorities seeking to generate funds from a quick sale of assets marked “a clear change from 2024, when the majority (six in ten) of municipal officials said they would prioritise restructuring services and using savings to manage growing fiscal pressures.”
Detailed Examples of Proposed Disposals
Medway Council in Kent said its asset disposal plan featured the disposal of a retail complex in Rainham and a social club in Rochester to raise £20m over five years.
- Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will also be disposed of under the strategy.
Local Levy Increases and Broader Financial Strains
The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will need to raise council taxes next April to cover the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.
The authority explained it will press ahead with asset sales after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting innovative approaches but certain measures require time to achieve both improved services and cost efficiency,” stated a council leader.
He continued: “There are population challenges which will continue to add to the strains 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 Patterns and Forecasts
A survey of county councils this week also found council budgets being strained by the increasing figures of children and adults requiring Send support.
A network of councils said that council deficits will hit £4.4bn a year by 2029, as they struggle to cope with increased demand.
Ministers have put off planned reforms to the special educational needs framework until the coming year after a white paper setting out those reforms was recently delayed.
Deprivation and Financial Gaps
Based on the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, many key cities members were among the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 IMD measures,” noted the report.
“While only one key city is in the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the worst-off 20% of England. The figures highlights the scale of challenges facing local leaders across key cities in the next twelve months,” the analysis added.
“Council officials have been explicit about the need for a fair and sustainable financial structure that accounts for and responds to the actual extent of disadvantage and need,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to allocate spend to, and which to cut, to the detriment of their residents.”
A fifth of local authorities have cut or compromised social care provision in the last year, the study revealed.
