According to a new poll of local authorities, UK councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Growing Financial Challenges Prompt Asset Sales
The Key Cities Group for major urban areas in England reported that six out of ten of local authorities are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for selling public land and open spaces to shore up their finances, but they argue they must proceed to generate essential revenue from property disposals or declare themselves bankrupt.
The group said that a significant number of councils seeking to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the largest share (60%) of municipal officials stated they would prioritise restructuring services and using savings to weather increasing fiscal pressures.”
Detailed Examples of Planned Disposals
Medway Council in Kent announced its asset disposal plan included the disposal of a retail complex in a local town and a social club in another town to raise 20 million pounds over the next half-decade.
- Gillingham golf club and commercial properties held in two English counties, which all generate rent for the authority, will also be disposed of under the strategy.
Local Levy Rises and Broader Fiscal Pressures
This research of councils in the coalition, which covers several urban centers, further found that more than 70% of councils will need to increase local levies next spring to cover the rising cost of core provisions, increased rates of housing insecurity, and a longstanding housing shortage.
Medway council explained 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 temporary accommodation.
“We are adopting creative strategies but certain measures take time to deliver both improved services and cost efficiency,” said a council leader.
He added: “There are population challenges which will persist to add to the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Patterns and Forecasts
Research of regional authorities this week further found council budgets being stretched by the growing number of children and older individuals needing Send support.
A network of councils said that council deficits will reach £4.4bn a year by the end of the decade, as they struggle to cope with rising needs.
Ministers have put off scheduled changes to the Send system until next year after a policy document outlining those changes was recently delayed.
Deprivation and Financial Shortfalls
According to the latest indices of deprivation (IMD) covering English councils, several participating urban areas were included in the most deprived in the country.
- “Participating urban centers like several major towns rank in the most deprived 30 nationally under the 2025 deprivation indices,” noted the report.
“Although only one key city is among the top 10 for disadvantaged communities countrywide, cities are much more prone to be in the most deprived fifth of England. The data underscores the scale of challenges confronting municipal officials across key cities in the coming year,” the report added.
“Local government leaders have been clear about the need for a equitable and lasting funding system that reflects and addresses the real levels of disadvantage and demand,” said Michael Mordey.
“Lacking this, councils will continue to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their residents.”
A fifth of local authorities have cut or compromised social care provision in the last year, the study found.
