Based on a recent study of municipal councils, English councils are planning to sell community centers, athletic facilities, and shopping arcades as they rely on a fire sale of properties to balance the books.
Growing Financial Pressures Drive Asset Sales
The Key Cities Group for second-tier cities in England stated that 60% of local authorities are planning to dispose of properties to cover 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 contend they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
The group noted that a significant number of councils seeking to raise money from a quick sale of assets represented “a distinct shift from 2024, when the majority (six in ten) of local leaders stated they would prioritise restructuring services and using financial reserves to manage increasing financial challenges.”
Specific Examples of Planned Disposals
Medway Council in Kent said its property management strategy featured the sale of a retail complex in Rainham and a social club in another town to generate 20 million pounds over five years.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be sold under the plan.
Council Tax Increases and Wider Fiscal Pressures
This research of councils in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will have to increase council taxes next spring to cover the rising cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting creative strategies but certain measures require time to deliver both improved services and cost efficiency,” said Vince Maple.
He continued: “There are demographic pressures which will continue to increase the pressures we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is extremely difficult.”
Countrywide Trends and Forecasts
A survey of county councils this week further found local finances being stretched by the growing number of children and adults needing 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 scheduled changes to the Send system until the coming year after a policy document setting out those changes has been postponed.
Disadvantage and Financial Shortfalls
According to the most recent indices of deprivation (IMD) for English councils, several key cities members were included in the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 deprivation indices,” said the report.
“While only one key city is among the ten most deprived for deprived neighbourhoods nationally, urban areas are far more likely to be in the worst-off 20% of the nation. The figures underscores the extent of difficulties confronting local leaders across key cities in the coming year,” the report added.
“Local government leaders have been clear about the necessity for a equitable and lasting funding system that reflects and responds to the actual extent of disadvantage and demand,” stated a council leader.
“Lacking this, councils will persist to face impossible choices around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
One in five of councils have reduced or weakened care services in the past 12 months, the study revealed.
