According to a new study of local authorities, English councils are planning to sell community centers, sports centres, and retail spaces as they bet on a fire sale of properties to stabilize finances.
Increasing Fiscal Pressures Prompt Asset Sales
The Key Cities Group for second-tier cities in England reported that 60% of councils are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.
Local governments have in the past come under fire for selling public land and open spaces to shore up their finances, but they argue they must continue to raise vital cash from asset sales or declare themselves bankrupt.
The group noted that a significant number of councils seeking to raise money from a fire sale of holdings marked “a distinct shift from 2024, when the majority (60%) of local leaders stated they would focus on restructuring services and using savings to weather growing financial challenges.”
Specific Examples of Proposed Disposals
Medway Council in southeast England announced its asset disposal plan featured the disposal of a shopping centre in a local town and a social club in another town to raise £20m over the next half-decade.
- Gillingham golf club and business parks owned in two English counties, which all provide rental income for Medway council, will additionally be sold under the plan.
Council Tax Rises and Wider Fiscal Pressures
This research of councils in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will need to raise council taxes next spring to address the rising cost of core provisions, increased rates of housing insecurity, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are taking creative strategies but certain measures require time to achieve both better provisions and financial savings,” stated a council leader.
He added: “There are population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Trends and Projections
Research of regional authorities recently further found council budgets being strained by the increasing figures of young people and adults requiring Send support.
A network of councils projected that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they struggle to manage rising needs.
Government officials have delayed scheduled changes to the special educational needs framework until the coming year after a policy document setting out those changes was recently delayed.
Disadvantage and Financial Gaps
Based on the latest deprivation measures (IMD) for English councils, several key cities members were among the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 deprivation indices,” said the study.
“While only one key city is among the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the most deprived fifth of England. The data underscores the extent of difficulties facing municipal officials across key cities in the next twelve months,” the report added.
“Local government leaders have been clear about the necessity for a fair and sustainable funding system that accounts for and addresses the real levels of deprivation and need,” stated a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”
One in five of councils have reduced or weakened care services in the past 12 months, the survey revealed.
