Based on a new survey of municipal councils, UK councils are preparing to offload community centers, sports centres, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Increasing Financial Pressures Drive Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of local authorities are planning to sell assets to meet the rising costs of adult and children’s social care.
Councils have previously faced criticism for disposing of playing fields and open spaces to support their budgets, but they argue they must continue to raise vital cash from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of authorities seeking to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials said they would prioritise restructuring services and utilising savings to weather increasing fiscal pressures.”
Specific Examples of Planned Sales
One local authority in Kent said its property management strategy included the sale of a shopping centre in Rainham and a social club in Rochester to raise £20m over the next half-decade.
- Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all generate rent for the authority, will also be sold under the plan.
Council Tax Rises and Broader Fiscal Strains
This research of councils in the key cities group, which includes several urban centers, further found that over seven in ten of authorities will need to raise local levies next April to address the rising cost of core provisions, increased rates 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, adult social care, and short-term housing.
“We are taking creative strategies but certain measures require time to achieve both improved services and cost efficiency,” stated a council leader.
He added: “There are population challenges which will continue to increase the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Patterns and Forecasts
Research of county councils recently also found council budgets being stretched by the growing number of young people and adults requiring special educational assistance.
The County Councils Network said that council deficits will reach £4.4bn a year by 2029, as they struggle to cope with increased demand.
Ministers have delayed scheduled changes to the Send system until the coming year after a policy document setting out those changes was recently delayed.
Deprivation and Financial Shortfalls
According to the most recent deprivation measures (IMD) for UK local authorities, several key cities members were among the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 across the country under the 2025 IMD measures,” noted the study.
“While only a single urban area is in the top 10 for deprived neighbourhoods countrywide, cities are far more likely to be in the worst-off 20% of the nation. The figures underscores the scale of challenges facing local leaders across major urban centers in the coming year,” the report added.
“Local government leaders have been clear about the need for a fair and sustainable funding system that reflects and responds to the real levels of disadvantage and need,” stated a council leader.
“Lacking this, local authorities will continue to face impossible choices around which essential services to allocate spend to, and which to cut, to the detriment of their residents.”
One in five of councils have reduced or weakened social care provision in the past 12 months, the survey revealed.
