Based on a latest poll of local authorities, UK councils are planning to sell community centers, sports centres, and retail spaces as they bet on a fire sale of assets to balance the books.
Increasing Financial Challenges Drive Asset Sales
A coalition of councils representing second-tier cities in the UK stated that six out of ten of councils are planning to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have previously come under fire for disposing of playing fields and land to shore up their finances, but they contend they must continue to generate essential revenue from asset sales or face insolvency.
This coalition noted that a high proportion of councils seeking to generate funds from a quick sale of holdings represented “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would prioritise restructuring services and utilising financial reserves to weather growing financial challenges.”
Specific Examples of Proposed Sales
Medway Council in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a community venue in Rochester to raise £20m over five years.
- A local golf course and business parks owned in two English counties, which all provide rental income for Medway council, will also be sold under the plan.
Local Levy Rises and Wider Fiscal Strains
The survey of local authorities in the coalition, which covers several urban centers, further found that more than 70% of authorities will need to increase council taxes next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council said it will proceed with property disposals after steep rises in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but some of these require time to achieve both better provisions and cost efficiency,” said Vince Maple.
He continued: “We face population challenges which will persist to increase the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
Research of regional authorities recently further found local finances being stretched by the increasing figures of children and older individuals needing special educational assistance.
A network of councils said that local shortfalls will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper outlining those reforms has been postponed.
Disadvantage and Funding Gaps
According to the latest deprivation measures (IMD) covering English councils, many 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,” noted the report.
“Although only one key city is in the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the most deprived fifth of the nation. The figures highlights the extent of difficulties facing municipal officials across key cities in the coming year,” the report concluded.
“Local government leaders have been explicit about the necessity for a equitable and lasting funding system that reflects and addresses the real levels of disadvantage and demand,” said Michael Mordey.
“Without this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the disadvantage of their communities.”
A fifth of councils have reduced or weakened social care provision in the past 12 months, the study revealed.
