According to a new study of local authorities, English councils are preparing to sell social clubs, sports centres, and retail spaces as they rely on a rapid disposal of properties to balance the books.
Growing Financial Challenges Drive Asset Sales
A coalition of councils for second-tier cities in England stated that six out of ten of local authorities are planning to dispose of properties to meet the rising costs of adult and children’s social care.
Councils have in the past faced criticism for disposing of playing fields and open spaces to support their budgets, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.
The group 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 majority (60%) of municipal officials stated they would prioritise service redesigns and utilising financial reserves to manage growing financial challenges.”
Detailed Examples of Planned Sales
One local authority in southeast England said its asset disposal plan included the sale of a shopping centre in a local town and a community venue in another town to generate £20m over the next half-decade.
- Gillingham golf club and commercial properties held in two English counties, which all generate rent for Medway council, will also be sold under the plan.
Local Levy Rises and Broader Financial Strains
The survey of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will have to raise council taxes next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a longstanding accommodation deficit.
Medway council said it will proceed with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but certain measures take time to achieve both improved services and financial savings,” stated a council leader.
He added: “We face population challenges which will continue to add to the strains we have. As a local government body, we had a 91% cut in our revenue support grant from over the past decade, which is extremely difficult.”
National Trends and Forecasts
A survey of regional authorities recently also found local finances being strained by the growing number of children and adults needing special educational assistance.
The County Councils Network said that local shortfalls will reach £4.4bn a year by the end of the decade, as they struggle to cope with rising needs.
Government officials have delayed planned reforms to the special educational needs framework until the coming year after a white paper setting out those changes was recently delayed.
Disadvantage and Funding Gaps
According to the most recent indices of deprivation (IMD) covering English councils, several key cities members were included in the most disadvantaged in England.
- “Participating urban centers like several major towns place in the most deprived 30 across the country under the 2025 deprivation indices,” said the report.
“Although only a single urban area is among the ten most deprived for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of England. The data underscores the scale of difficulties confronting municipal officials across key cities in the coming year,” the report added.
“Local government leaders have been explicit about the necessity for a equitable and lasting financial structure that reflects and responds to the actual extent of disadvantage and demand,” stated a council leader.
“Without this, councils will persist to face difficult decisions around which vital provisions to fund, and which to cut, to the disadvantage of their residents.”
A fifth of councils have reduced or weakened care services in the past 12 months, the study revealed.
