According to a recent poll of municipal councils, English councils are preparing to offload community centers, sports centres, and shopping arcades as they rely on a rapid disposal of properties to stabilize finances.
Growing Fiscal Challenges Prompt Asset Sales
A coalition of councils for second-tier cities in England reported that six out of ten of councils are intending to sell assets to cover the escalating costs of social services for vulnerable individuals.
Councils have previously come under fire for selling public land and open spaces to shore up their budgets, but they argue they must proceed to raise vital cash from property disposals or declare themselves bankrupt.
This coalition said that a high proportion of authorities attempting to raise money from a fire sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials said they would prioritise service redesigns and using financial reserves to weather increasing financial challenges.”
Specific Cases of Proposed Sales
Medway Council in Kent said its property management strategy included the disposal of a retail complex in Rainham and a social club in another town to generate £20m over the next half-decade.
- A local golf course and business parks owned in two English counties, which all generate rent for Medway council, will also be disposed of under the plan.
Local Levy Rises and Wider Financial Strains
This research of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to raise council taxes next April to cover the rising cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.
The authority said it will press ahead with asset sales after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but some of these take time to deliver both improved services and cost efficiency,” said Vince Maple.
He added: “There are population challenges which will continue to increase the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
National Trends and Forecasts
Research of regional authorities this week further found local finances being stretched by the growing number of young people and older individuals needing Send support.
The County Councils Network projected that council deficits will hit £4.4bn a year by 2029, as they struggle to cope with increased demand.
Ministers have delayed planned reforms to the Send system until next year after a white paper setting out those changes has been postponed.
Deprivation and Funding Gaps
According to the latest deprivation measures (IMD) for 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 place in the top 30 across the country under the 2025 deprivation indices,” said the report.
“While only a single urban area is in the ten most deprived for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of England. The data underscores the extent of challenges confronting local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Local government leaders have been clear about the need for a fair and sustainable funding system that accounts for and responds to the actual extent of deprivation and need,” said a council leader.
“Lacking this, councils will persist to face difficult decisions around which vital provisions to fund, and which to cut, to the disadvantage of their residents.”
One in five of councils have cut or compromised care services in the past 12 months, the study revealed.
