Based on a new study of local authorities, UK councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of properties to stabilize finances.
Growing Fiscal Challenges Drive Asset Sales
The Key Cities Group representing second-tier cities in England reported that 60% of local authorities are planning to sell assets to meet the escalating costs of social services for vulnerable individuals.
Councils have in the past faced criticism for selling playing fields and open spaces to support their budgets, but they contend they must proceed to raise vital cash from property disposals or face insolvency.
The group noted that a significant number of authorities seeking to raise money from a fire sale of assets marked “a clear change from 2024, when the largest share (six in ten) of local leaders said they would prioritise restructuring services and utilising savings to weather growing financial challenges.”
Detailed Examples of Planned Sales
One local authority in Kent announced its property management strategy included the sale of a retail complex in a local town and a social club in Rochester to generate £20m over five years.
- Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be disposed of under the strategy.
Local Levy Increases and Wider Fiscal Strains
The survey of councils in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of authorities will need to raise 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 asset sales after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking innovative approaches but certain measures take time to deliver both better provisions and cost efficiency,” stated a council leader.
He added: “There are population challenges which will persist to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Trends and Projections
Research of county councils this week further found local finances being stretched by the increasing figures of children and adults needing special educational assistance.
A network of councils projected that council deficits will hit £4.4bn a year by 2029, as they struggle to cope with rising needs.
Government officials have delayed scheduled changes to the Send system until next year after a policy document outlining those changes was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) for UK local authorities, several key cities members were included in the most disadvantaged in England.
- “Participating urban centers like several major towns place in the top 30 across the country under the 2025 deprivation indices,” noted the report.
“While only a single urban area is among the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the most deprived fifth of the nation. The figures underscores the extent of challenges facing municipal officials across major urban centers in the next twelve months,” the report added.
“Local government leaders have been clear about the need for a fair and sustainable financial structure that accounts for and responds to the real levels of disadvantage and need,” stated Michael Mordey.
“Lacking this, councils will continue to face difficult decisions around which essential services to fund, and which to reduce, to the detriment of their communities.”
One in five of local authorities have cut or compromised care services in the last year, the study revealed.
