According to a new survey of municipal councils, UK councils are planning to offload social clubs, athletic facilities, and retail spaces as they bet on a rapid disposal of properties to balance the books.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils for second-tier cities in England reported that 60% 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 come under fire for selling public land and land to support their budgets, but they argue they must continue to generate essential revenue from property disposals or face insolvency.
This coalition noted that a high proportion of councils seeking to generate funds from a quick sale of assets marked “a clear change from 2024, when the majority (six in ten) of municipal officials said they would prioritise restructuring services and utilising savings to weather increasing fiscal pressures.”
Specific Cases of Proposed Sales
One local authority in Kent said its property management strategy included the sale of a retail complex in Rainham and a community venue in another town to generate £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for Medway council, will also be sold under the plan.
Local Levy Rises and Wider Financial Pressures
The survey of councils in the key cities group, which covers several urban centers, further found that more than 70% of councils will need to increase local levies next spring to address the growing cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.
The authority explained it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking innovative approaches but certain measures require time to achieve both better provisions and financial savings,” stated Vince Maple.
He added: “We face demographic pressures 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 2010-24, which is very challenging.”
Countrywide Trends and Projections
Research of county councils recently also found local finances being strained by the growing number of children and older individuals needing special educational assistance.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they struggle to manage rising needs.
Ministers have put off scheduled changes to the Send system until next year after a policy document setting out those changes was recently delayed.
Disadvantage and Financial Shortfalls
Based on the most recent deprivation measures (the Index of Multiple Deprivation) for UK local authorities, several key cities members were included in the most deprived in the country.
- “Participating urban centers like several major towns place in the top 30 across the country under the 2025 IMD measures,” noted the study.
“Although only a single urban area is among the top 10 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 challenges confronting 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 accounts for and addresses the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, councils will continue to face impossible choices around which vital provisions to fund, and which to cut, to the disadvantage of their residents.”
One in five of local authorities have cut or compromised care services in the last year, the study found.
