Based on a new study of municipal councils, English councils are planning to sell community centers, sports centres, and shopping arcades as they bet on a rapid disposal of assets to balance the books.
Increasing Fiscal Challenges Drive Asset Sales
The Key Cities Group for second-tier cities in England reported that six out of ten of councils are intending to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have previously come under fire for disposing of playing fields and open spaces to shore up their budgets, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.
The group noted that a high proportion of authorities attempting to raise money from a fire sale of holdings represented “a distinct shift from 2024, when the largest share (60%) of local leaders said they would focus on service redesigns and using financial reserves to manage growing financial challenges.”
Specific Cases of Planned Disposals
One local authority in Kent announced its asset disposal plan included the disposal of a shopping centre in a local town and a community venue in Rochester to raise £20m over five years.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all provide rental income for the authority, will additionally be sold under the strategy.
Local Levy Increases and Wider Financial Strains
This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to increase local levies next April to cover the rising cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.
The authority explained it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are taking creative strategies but certain measures take time to achieve both better provisions and cost efficiency,” said Vince Maple.
He added: “We face population challenges which will continue to increase the strains we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Patterns and Projections
A survey of county councils this week further found council budgets being strained by the growing number of children and older individuals needing Send support.
A network of councils said that local shortfalls will reach £4.4bn a year by the end of the decade, as they struggle to cope with increased demand.
Ministers have put off scheduled changes to the special educational needs framework until next year after a policy document outlining those reforms was recently delayed.
Deprivation and Funding Shortfalls
Based on the most recent indices of deprivation (IMD) for English councils, several key cities members were included in the most deprived in the country.
- “Member cities like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” said the study.
“Although only one key city is in the ten most deprived for deprived neighbourhoods nationally, urban areas are much more prone to be in the worst-off 20% of England. The data underscores the scale of difficulties confronting municipal officials across key cities in the next twelve months,” the analysis added.
“Council officials have been clear about the necessity for a equitable and lasting funding system that reflects and responds to the real levels of deprivation and need,” said Michael Mordey.
“Without this, local authorities will continue to face difficult decisions around which essential services to fund, and which to cut, to the disadvantage of their communities.”
A fifth of local authorities have cut or compromised social care provision in the past 12 months, the study revealed.
