Based on a new survey of municipal councils, UK councils are planning to offload social clubs, sports centres, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Growing Financial Pressures Prompt Asset Sales
The Key Cities Group for second-tier cities in England stated that 60% of councils are planning to sell assets to meet the rising costs of adult and children’s social care.
Councils have in the past faced criticism for disposing of public land and land to support their finances, but they contend they must proceed to generate essential revenue from property disposals or face insolvency.
The group said that a high proportion of councils attempting to generate funds from a quick sale of holdings marked “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would prioritise service redesigns and using financial reserves to weather growing fiscal pressures.”
Detailed Examples of Planned Disposals
One local authority in Kent said its asset disposal plan featured the disposal of a shopping centre in a local town and a community venue in Rochester to raise 20 million pounds over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for Medway council, will additionally be sold under the plan.
Council Tax Rises and Wider Financial Strains
The survey of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will need to increase council taxes next April to address the rising cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
Medway council explained it will proceed with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking creative strategies but certain measures require time to achieve both improved services and financial savings,” stated a council leader.
He continued: “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 revenue support grant from 2010-24, which is extremely difficult.”
National Patterns and Forecasts
Research of county councils this week further found council budgets being stretched by the growing number of young people and adults requiring Send support.
The County Councils Network projected that council deficits will hit 4.4 billion pounds a year by 2029, as they grapple to cope with rising needs.
Government officials have put off scheduled changes to the special educational needs framework until the coming year after a white paper outlining those changes was recently delayed.
Deprivation and Financial Shortfalls
According to the latest deprivation measures (IMD) covering UK local authorities, many participating urban areas were among the most deprived in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 across the country under the 2025 IMD measures,” noted the report.
“While only one key city is in the ten most deprived for deprived neighbourhoods nationally, cities are much more prone to be in the worst-off 20% of England. The figures highlights the scale of difficulties facing municipal officials across key cities in the coming year,” the analysis added.
“Council officials have been clear about the need for a fair and sustainable funding system that accounts for and addresses the real levels of deprivation and need,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the detriment of their communities.”
One in five of local authorities have cut or compromised care services in the past 12 months, the study revealed.
