According to a new study of local authorities, English councils are preparing to offload community centers, athletic facilities, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Increasing Financial Challenges Drive Asset Sales
The Key Cities Group representing major urban areas in the UK reported that six out of ten of councils are planning to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of playing fields and land to support their finances, but they contend they must continue to raise vital cash from property disposals or declare themselves bankrupt.
This coalition said that a high proportion of councils seeking to generate funds from a fire sale of assets marked “a clear change from 2024, when the largest share (six in ten) of local leaders stated they would focus on service redesigns and utilising financial reserves to weather growing financial challenges.”
Specific Cases of Planned Disposals
One local authority in Kent said its property management strategy included the disposal of a retail complex in a local town and a community venue in Rochester to raise 20 million pounds over five years.
- A local golf course and business parks held in two English counties, which all provide rental income for Medway council, will also be sold under the plan.
Council Tax Increases and Broader Financial Pressures
The survey of councils in the key cities group, which covers several urban centers, further found that more than 70% of authorities will have to raise council taxes next April to address the rising cost of essential services, increased rates of homelessness, and a longstanding accommodation deficit.
The authority said it will proceed with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures take time to deliver both better provisions and cost efficiency,” stated Vince Maple.
He added: “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 2010-24, which is very challenging.”
National Trends and Forecasts
Research of regional authorities this week also found local finances being stretched by the increasing figures of young people and adults needing Send support.
A network of councils projected that local shortfalls will reach 4.4 billion pounds a year by the end of the decade, as they struggle to cope with increased demand.
Ministers have delayed scheduled changes to the special educational needs framework until next year after a policy document outlining those changes was recently delayed.
Deprivation and Financial Shortfalls
According to the most recent deprivation measures (IMD) for English councils, several participating urban areas were included in the most deprived in the country.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 IMD measures,” noted the report.
“While only one key city is in the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The data underscores the scale of challenges confronting local leaders across key cities in the coming year,” the analysis added.
“Local government leaders have been clear about the necessity for a fair and sustainable financial structure that reflects and responds to the actual extent of disadvantage and need,” stated Michael Mordey.
“Without this, local authorities will continue to face impossible choices around which vital provisions to fund, and which to cut, to the disadvantage of their communities.”
One in five of local authorities have cut or compromised social care provision in the past 12 months, the survey found.
