Based on a new study of municipal councils, English councils are planning to offload social clubs, athletic facilities, and retail spaces as they bet on a fire sale of assets to balance the books.
Increasing Fiscal Challenges Prompt Asset Sales
The Key Cities Group for second-tier cities in England reported that six out of ten of councils are intending to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of public land and land to support their finances, but they argue they must proceed to raise vital cash from asset sales or declare themselves bankrupt.
The group said that a significant number of authorities seeking to generate funds from a quick sale of holdings represented “a clear change from 2024, when the largest share (60%) of municipal officials said they would focus on restructuring services and utilising savings to manage increasing fiscal pressures.”
Detailed Cases of Proposed Disposals
One local authority in Kent announced its property management strategy included the sale 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 provide rental income for Medway council, will also be sold under the strategy.
Council Tax Rises and Broader Fiscal Pressures
This research of councils in the coalition, which covers several urban centers, also found that over seven in ten of authorities will have to increase local levies next April to cover the rising cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.
The authority said it will proceed with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking innovative approaches but some of these require time to achieve both improved services and financial savings,” stated Vince Maple.
He continued: “We face population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is very challenging.”
Countrywide Trends and Forecasts
Research of county councils recently also found local finances being stretched by the growing number of children and older individuals needing special educational assistance.
The County Councils Network said that council deficits will hit £4.4bn a year by 2029, as they grapple to cope with rising needs.
Ministers have put off scheduled changes to the special educational needs framework until the coming year after a white paper setting out those reforms has been postponed.
Deprivation and Funding Gaps
Based on the latest indices of deprivation (IMD) for 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 nationally under the 2025 deprivation indices,” noted the study.
“While only a single urban area is in the ten most deprived for disadvantaged communities countrywide, urban areas are far more likely to be in the worst-off 20% of England. The data highlights the scale of difficulties facing local leaders across key cities in the coming year,” the analysis added.
“Local government leaders have been explicit about the necessity for a equitable and lasting funding system that reflects and responds to the actual extent of deprivation and demand,” stated Michael Mordey.
“Without this, councils will persist to face difficult decisions around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
One in five of councils have cut or compromised care services in the last year, the study revealed.
