According to a new study of local authorities, UK councils are preparing to sell social clubs, sports centres, and shopping arcades as they bet on a rapid disposal of assets to balance the books.
Growing Fiscal Challenges Drive Asset Sales
A coalition of councils representing second-tier cities in England reported that 60% of councils are intending to sell assets to meet the rising costs of social services for vulnerable individuals.
Councils have in the past faced criticism for disposing of public land and open spaces to shore up their budgets, but they contend they must proceed to raise vital cash from asset sales or face insolvency.
The group said that a significant number of councils attempting to generate funds from a quick sale of assets represented “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would prioritise service redesigns and using savings to weather growing fiscal pressures.”
Specific Cases of Planned Disposals
One local authority in southeast England said its asset disposal plan featured the sale 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 business parks owned in two English counties, which all generate rent for Medway council, will additionally be sold under the plan.
Local Levy Increases and Wider Fiscal Pressures
This research of local authorities in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of authorities will have to raise council taxes next April to cover the rising cost of core provisions, increased rates of homelessness, and a persistent housing shortage.
Medway council explained it will press ahead with property disposals after steep rises in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting innovative approaches but some of these require time to deliver both improved services and cost efficiency,” said Vince Maple.
He continued: “There are population challenges which will continue to increase the strains we have. As a local government body, we had a drastic reduction in our central funding from over the past decade, which is extremely difficult.”
Countrywide Patterns and Projections
Research of county councils recently further found local finances being stretched by the increasing figures of young people and adults needing Send support.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they struggle to manage rising needs.
Ministers have delayed planned reforms to the special educational needs framework until next year after a white paper setting out those reforms was recently delayed.
Disadvantage and Funding Gaps
Based on the most recent indices of deprivation (the Index of Multiple Deprivation) for English councils, several key cities members were included in 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.
“Although only one key city is in the ten most deprived for disadvantaged communities countrywide, cities are much more prone to be in the most deprived fifth of the nation. The figures highlights the extent of challenges confronting local leaders across key cities in the next twelve months,” the report concluded.
“Council officials have been clear about the need for a equitable and lasting funding system that accounts for and responds to the real levels of disadvantage and demand,” said a council leader.
“Without this, local authorities will persist 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 social care provision in the last year, the study revealed.
