Based on a new survey of municipal councils, English councils are planning to offload social clubs, athletic facilities, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Growing Fiscal Pressures Drive Asset Sales
A coalition of councils for major urban areas in the UK stated that 60% of councils are planning to dispose of properties to meet the escalating costs of adult and children’s social care.
Local governments have previously come under fire for disposing of playing fields and open spaces to support their finances, but they contend they must proceed to generate essential revenue from property disposals or face insolvency.
The group noted that a high proportion of councils attempting to raise money from a quick sale of assets represented “a clear change from 2024, when the majority (six in ten) of municipal officials stated they would focus on restructuring services and using savings to manage increasing financial challenges.”
Specific Cases of Planned 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 the next half-decade.
- Gillingham golf club and business parks held in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be disposed of under the strategy.
Local Levy Rises and Wider Financial Pressures
The survey of councils in the key cities group, which covers several urban centers, also found that over seven in ten of councils will need to increase council taxes next spring to cover the growing cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after steep rises in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting innovative approaches but some of these take time to deliver both improved services and cost efficiency,” said Vince Maple.
He continued: “We face population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
National Trends and Forecasts
A survey of county councils recently further found local finances being stretched by the growing number of young people and older individuals needing special educational assistance.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by the end of the decade, as they grapple to manage rising needs.
Ministers have put off scheduled changes to the Send system until the coming year after a white paper outlining those changes was recently delayed.
Disadvantage and Funding Gaps
According to the most recent deprivation measures (IMD) for English councils, several key cities members were among the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 IMD measures,” said the study.
“Although only a single urban area is in the top 10 for disadvantaged communities nationally, urban areas are far more likely to be in the most deprived fifth of England. The data highlights the scale of difficulties facing local leaders across major urban centers in the coming year,” the report concluded.
“Council officials have been explicit about the necessity for a equitable and lasting financial structure that reflects and addresses the real levels of deprivation and need,” said a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which essential services to fund, and which to cut, to the detriment of their residents.”
One in five of councils have cut or compromised care services in the past 12 months, the survey revealed.
