🔗 Share this article

According to a new study of local authorities, English councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they bet on a fire sale of properties to stabilize finances.

Growing Fiscal Pressures Drive Asset Sales

A coalition of councils representing major urban areas in England reported that six out of ten of local authorities are intending to sell assets to meet the rising costs of adult and children’s social care.

Local governments have previously come under fire for selling playing fields and open spaces to support their finances, but they argue they must continue to raise vital cash from asset sales or declare themselves bankrupt.

The group noted that a high proportion of authorities attempting to generate funds from a quick sale of assets represented “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and utilising financial reserves to manage increasing fiscal pressures.”

Detailed Examples of Planned Disposals

One local authority in Kent said its property management strategy included the disposal of a shopping centre in Rainham and a community venue in another town to raise £20m over five years.

• A local golf course and commercial properties held in Worcestershire and Suffolk, which all provide rental income for Medway council, will also be disposed of under the strategy.

Local Levy Rises and Broader Fiscal Strains

This research of councils in the key cities group, which covers several urban centers, also found that more than 70% of authorities will have to raise local levies next April to address the rising cost of core provisions, higher levels of homelessness, and a longstanding housing shortage.

The authority said it will proceed with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.

“We are taking innovative approaches but some of these require time to achieve both better provisions and financial savings,” said Vince Maple.

He added: “We face population challenges which will persist to increase the pressures we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is very challenging.”

Countrywide Patterns and Forecasts

Research of regional authorities this week also found local finances being strained by the growing number of children and older individuals needing special educational assistance.

The County Councils Network said that council deficits will reach £4.4bn a year by the end of the decade, as they struggle to cope with increased demand.

Ministers 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.

Deprivation and Funding Gaps

According to the latest deprivation measures (IMD) for English councils, many key cities members were among the most deprived in England.

• “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 IMD measures,” noted the study.

“While only a single urban area is in the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The data underscores the extent of challenges facing municipal officials across key cities in the coming year,” the analysis concluded.

“Council officials have been explicit about the necessity for a fair and sustainable funding system that reflects and addresses the real levels of disadvantage and demand,” stated a council leader.

“Lacking this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their communities.”

One in five of councils have cut or compromised social care provision in the last year, the study revealed.