Based on a new poll of municipal councils, UK councils are planning to offload social clubs, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.
Increasing Fiscal Pressures Prompt Asset Sales
The Key Cities Group for second-tier cities in the UK stated that six out of ten of councils are intending to sell assets 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 contend they must continue to raise vital cash from property disposals or face insolvency.
The group said that a significant number of authorities attempting to generate funds from a quick sale of holdings represented “a distinct shift from 2024, when the largest share (six in ten) of municipal officials said they would prioritise restructuring services and using savings to manage increasing fiscal pressures.”
Detailed Cases of Proposed Disposals
One local authority in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a social club in Rochester to raise 20 million pounds over the next half-decade.
- Gillingham golf club and business parks owned in two English counties, which all provide rental income for Medway council, will additionally be sold under the plan.
Council Tax Rises and Wider Fiscal Pressures
The survey of local authorities in the coalition, which covers several urban centers, further found that over seven in ten of councils will need to raise local levies next spring to cover the growing cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.
The authority said it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting creative strategies but certain measures require time to achieve both better provisions and cost efficiency,” said a council leader.
He added: “We face demographic pressures which will continue to add to the strains we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Trends and Forecasts
Research of county councils this week also found local finances being strained by the growing number of young people and adults requiring Send support.
The County Councils Network said that council deficits will hit £4.4bn a year by 2029, as they struggle to manage rising needs.
Government officials have put off scheduled changes to the Send system until the coming year after a white paper outlining those changes has been postponed.
Deprivation and Funding Shortfalls
According to the latest indices of deprivation (IMD) covering English councils, several key cities members were among the most deprived in the country.
- “Participating urban centers like several major towns rank in the most deprived 30 nationally under the 2025 IMD measures,” said the study.
“While only one key city is in the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the worst-off 20% of the nation. The figures highlights 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 equitable and lasting financial structure that accounts for and addresses the real levels of deprivation and demand,” stated a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which essential services to allocate spend to, and which to reduce, to the detriment of their residents.”
A fifth of councils have reduced or weakened care services in the last year, the survey found.
