Based on a latest poll of municipal councils, English councils are preparing to sell social clubs, sports centres, and shopping arcades as they rely on a fire sale of assets to stabilize finances.
Growing Financial Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England reported that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Local governments have in the past come under fire for disposing of public land and land to shore up their finances, but they argue they must proceed to raise vital cash from asset sales or declare themselves bankrupt.
The group noted that a significant number of authorities seeking to raise money from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of local leaders said they would focus on restructuring services and utilising savings to weather growing fiscal pressures.”
Specific Examples of Planned Disposals
Medway Council in southeast England said its asset disposal plan included the sale of a retail complex in Rainham and a social club in another town to raise 20 million pounds over five years.
- Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be sold under the plan.
Local Levy Rises and Wider Financial Pressures
The survey of councils in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of councils will have to raise local levies next spring to address the rising cost of essential services, higher levels of homelessness, and a persistent accommodation deficit.
Medway council said it will press ahead with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “We face demographic pressures which will persist 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.”
Countrywide Trends and Projections
Research of county councils this week also found local finances being strained by the increasing figures of children and adults requiring Send support.
The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by 2029, as they grapple to cope with increased demand.
Government officials have put off planned reforms to the Send system until the coming year after a policy document outlining those changes was recently delayed.
Deprivation and Funding Shortfalls
Based on the most recent deprivation measures (IMD) covering English councils, many key cities members were among the most deprived in the country.
- “Member cities like several major towns rank in the top 30 nationally under the 2025 IMD measures,” noted the study.
“While only a single urban area is among the ten most deprived for deprived neighbourhoods countrywide, cities are far more likely to be in the worst-off 20% of the nation. The data underscores the extent of difficulties facing municipal officials across key cities in the next twelve months,” the analysis concluded.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and addresses the actual extent of deprivation and need,” said Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to fund, and which to cut, to the detriment of their communities.”
A fifth of councils have cut or compromised social care provision in the last year, the survey revealed.
