According to a recent survey of municipal councils, English councils are planning to sell social clubs, sports centres, and shopping arcades as they bet on a fire sale of properties to stabilize finances.
Increasing Financial Pressures Prompt Asset Sales
A coalition of councils representing major urban areas in England reported that 60% of local authorities are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.
Local governments have previously faced criticism for selling public land and open spaces to support their finances, but they argue they must proceed to raise vital cash from property disposals or declare themselves bankrupt.
The group noted that a significant number of authorities seeking to raise money from a fire sale of holdings represented “a clear change from 2024, when the majority (six in ten) of local leaders said they would prioritise restructuring services and using financial reserves to weather growing fiscal pressures.”
Detailed Examples of Proposed Disposals
One local authority in southeast England announced its asset disposal plan included the disposal of a shopping centre in Rainham and a community venue in another town to generate 20 million pounds over five years.
- Gillingham golf club and commercial properties owned in two English counties, which all generate rent for the authority, will also be sold under the strategy.
Local Levy Increases and Wider Fiscal Pressures
This research of local authorities in the key cities group, which covers several urban centers, further found that over seven in ten of councils will need to increase local levies next April to address the growing cost of essential services, higher levels of homelessness, and a longstanding housing shortage.
Medway council said it will press ahead with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting innovative approaches but some of these take time to deliver both better provisions and cost efficiency,” said Vince Maple.
He continued: “There are demographic pressures which will continue to increase the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
National Trends and Projections
Research of county councils recently further found local finances being strained by the growing number of young people and older individuals needing special educational assistance.
The County Councils Network said that council deficits will reach £4.4bn a year by 2029, as they struggle to manage increased demand.
Government officials have delayed scheduled changes to the special educational needs framework until the coming year after a policy document setting out those reforms was recently delayed.
Deprivation and Funding Gaps
According to the most recent deprivation measures (IMD) for UK local authorities, many participating urban areas were among the most disadvantaged in the country.
- “Participating urban centers like several major towns rank in the most deprived 30 nationally under the 2025 deprivation indices,” noted the report.
“While only one key city is among the ten most deprived for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of the nation. The data highlights the extent of difficulties confronting municipal officials across key cities in the next twelve months,” the report added.
“Council officials have been clear about the necessity for a equitable and lasting funding system that reflects and addresses the real levels of disadvantage and demand,” said a council leader.
“Without this, local authorities will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of local authorities have reduced or weakened care services in the last year, the study found.
