According to a recent study of local authorities, English councils are preparing to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to stabilize finances.
Increasing Financial Pressures Prompt Asset Sales
A coalition of councils representing major urban areas in England reported that six out of ten of councils are planning to sell assets to meet the rising costs of social services for vulnerable individuals.
Local governments have previously come under fire for disposing of public land and open spaces to support their finances, but they argue they must continue to generate essential revenue from asset sales or declare themselves bankrupt.
The group said that a high proportion of authorities seeking to raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of local leaders said they would prioritise service redesigns and utilising savings to manage increasing financial challenges.”
Detailed Examples of Proposed Disposals
Medway Council in Kent said its asset disposal plan featured the sale of a retail complex in Rainham and a community venue in another town to generate £20m over the next half-decade.
- Gillingham golf club and commercial properties owned in two English counties, which all provide rental income for Medway council, will also be disposed of under the plan.
Council Tax Rises and Wider Financial Strains
This research of local authorities in the coalition, which covers several urban centers, also found that over seven in ten of authorities will need to increase council taxes next spring to address the growing cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
Medway council said it will press ahead with property disposals after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and financial savings,” stated a council leader.
He added: “There are population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”
National Trends and Projections
Research of regional authorities this week also found local finances being strained by the growing number of young people and older individuals requiring Send support.
A network of councils said that council deficits will hit £4.4bn a year by the end of the decade, as they grapple to manage increased demand.
Ministers have delayed planned reforms to the special educational needs framework until the coming year after a policy document setting out those reforms was recently delayed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, several key cities members were among the most deprived in England.
- “Member cities like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” noted the study.
“While only a single urban area is among the top 10 for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of England. The data underscores the extent of difficulties facing local leaders across key cities in the next twelve months,” the report added.
“Council officials have been clear about the necessity for a equitable and lasting financial structure that accounts for and responds to the real levels of disadvantage and need,” 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 detriment of their communities.”
One in five of local authorities have cut or compromised social care provision in the past 12 months, the study found.
