According to a new survey of municipal councils, English councils are preparing to offload social clubs, sports centres, and shopping arcades as they rely on a fire sale of properties to stabilize finances.
Increasing Fiscal Challenges Drive Asset Sales
A coalition of councils representing major urban areas in England stated that 60% of councils are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of playing fields and open spaces to support their finances, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.
The group noted that a significant number of authorities seeking to raise money from a fire sale of holdings marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials said they would prioritise service redesigns and utilising savings to weather growing financial challenges.”
Detailed Examples of Planned Sales
One local authority in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a community venue in another town to generate 20 million pounds over the next half-decade.
- Gillingham golf club and commercial properties owned in two English counties, which all generate rent for the authority, will also be disposed of under the plan.
Local Levy Rises and Broader Financial Strains
This research of councils in the key cities group, which includes several urban centers, also found that over seven in ten of councils will need to raise local levies next spring to cover the rising cost of core provisions, higher levels of housing insecurity, and a persistent accommodation deficit.
Medway council explained it will press ahead with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting innovative approaches but certain measures require time to achieve both improved services and cost efficiency,” stated Vince Maple.
He continued: “There are demographic pressures which will continue to increase the strains we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Trends and Projections
Research of county councils recently further found local finances being stretched by the growing number of young people and older individuals requiring Send support.
The County Councils Network projected that council deficits will hit £4.4bn a year by 2029, as they grapple to cope with rising needs.
Ministers have put off scheduled changes to the Send system until next year after a white paper setting out those reforms was recently delayed.
Disadvantage and Financial Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) covering English councils, many participating urban areas were among the most deprived in England.
- “Member cities like several major towns rank in the most deprived 30 across the country under the 2025 deprivation indices,” said the study.
“Although only one key city is among the top 10 for deprived neighbourhoods countrywide, cities are much more prone to be in the most deprived fifth of the nation. The figures highlights the scale of difficulties confronting municipal officials across major urban centers in the next twelve months,” the analysis added.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and responds to the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, councils will continue to face impossible choices around which essential services to fund, and which to cut, to the disadvantage of their residents.”
One in five of local authorities have cut or compromised social care provision in the past 12 months, the survey revealed.
