According to a new poll of local authorities, UK councils are preparing to sell community centers, sports centres, and retail spaces as they rely on a rapid disposal of assets to stabilize finances.
Increasing Fiscal Challenges Drive Asset Sales
The Key Cities Group representing major urban areas in England reported that 60% of councils are planning to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have previously faced criticism for disposing of playing fields and open spaces to support their budgets, but they argue they must proceed to raise vital cash from property disposals or face insolvency.
The group noted that a high proportion of councils seeking to raise money from a quick sale of holdings marked “a clear change from 2024, when the majority (60%) of municipal officials said they would prioritise service redesigns and utilising financial reserves to manage increasing fiscal pressures.”
Detailed Examples of Proposed Disposals
One local authority in southeast England said its property management strategy featured the disposal of a shopping centre in a local town and a community venue in Rochester to generate £20m over five years.
- Gillingham golf club and commercial properties held in two English counties, which all generate rent for Medway council, will also be sold under the strategy.
Council Tax Increases and Broader Financial Strains
The survey of councils in the coalition, which covers several urban centers, also found that more than 70% of authorities will need to raise local levies next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council explained it will proceed with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but some of these take time to deliver both improved services and cost efficiency,” stated Vince Maple.
He added: “There are population challenges which will persist to increase the pressures 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.”
National Trends and Projections
Research of regional authorities this week also found local finances being stretched by the increasing figures of young people and older individuals needing Send support.
The County Councils Network projected that council deficits will reach £4.4bn a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have put off planned reforms to the Send system until the coming year after a policy document setting out those changes has been postponed.
Deprivation and Funding Gaps
Based on the latest deprivation measures (the Index of Multiple Deprivation) for English councils, several key cities members were among the most deprived in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 IMD measures,” noted the report.
“While only one key city is in the ten most deprived for disadvantaged communities countrywide, urban areas are much more prone to be in the most deprived fifth of England. The data highlights the extent of difficulties facing municipal officials across key cities in the next twelve months,” 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 real levels of deprivation and need,” stated a council leader.
“Without this, councils will continue to face difficult decisions around which vital provisions to fund, and which to cut, to the disadvantage of their communities.”
One in five of councils have reduced or weakened care services in the last year, the study found.
