Based on a new study of local authorities, English councils are preparing to sell social clubs, sports centres, and shopping arcades as they bet on a rapid disposal of assets to stabilize finances.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England stated that six out of ten of councils are planning to sell assets to cover the rising costs of adult and children’s social care.
Local governments have in the past faced criticism for disposing of playing fields and land to shore up their finances, but they argue they must proceed to raise vital cash from asset sales or face insolvency.
This coalition noted that a significant number of authorities attempting to generate funds from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of municipal officials stated they would prioritise service redesigns and utilising savings to weather increasing fiscal pressures.”
Specific Examples of Proposed Disposals
Medway Council in Kent announced its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to raise £20m over the next half-decade.
- Gillingham golf club and commercial properties held in two English counties, which all provide rental income for the authority, will also be sold under the plan.
Local Levy Increases and Broader Financial Pressures
The survey of councils in the key cities group, which covers several urban centers, also found that over seven in ten of authorities will need to raise local levies next April to cover the growing cost of essential services, higher levels of housing insecurity, and a longstanding housing shortage.
Medway council said it will proceed with property disposals after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but some of these take time to achieve both improved services and financial savings,” stated Vince Maple.
He added: “We face demographic pressures 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 very challenging.”
Countrywide Patterns and Forecasts
Research of regional authorities recently also found local finances being strained by the growing number of young people and adults requiring Send support.
A network of councils said that council deficits will reach £4.4bn a year by the end of the decade, as they grapple to manage rising needs.
Ministers have put off scheduled changes to the Send system until the coming year after a policy document setting out those changes was recently delayed.
Deprivation and Financial Gaps
According to the latest indices of deprivation (the Index of Multiple Deprivation) for English councils, several key cities members were included in the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 IMD measures,” said the study.
“While only one key city is among the top 10 for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of the nation. The data underscores the extent of challenges facing local leaders across key cities in the coming year,” the report added.
“Local government leaders have been explicit about the necessity for a fair and sustainable financial structure that reflects and addresses the actual extent of deprivation and demand,” stated Michael Mordey.
“Lacking this, local authorities will persist to face difficult decisions around which essential services to allocate spend to, and which to cut, to the detriment of their residents.”
A fifth of councils have reduced or weakened social care provision in the past 12 months, the survey revealed.
