According to a latest poll of local authorities, UK councils are preparing to sell social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of assets to stabilize finances.
Increasing Financial Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of councils are planning to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for selling playing fields and open spaces to support their budgets, but they contend they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of councils attempting to generate funds from a quick sale of assets represented “a distinct shift from 2024, when the majority (60%) of municipal officials stated they would focus on restructuring services and utilising financial reserves to manage growing financial challenges.”
Detailed Examples of Planned Sales
Medway Council in Kent said 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 five years.
- A local golf course and commercial properties held in two English counties, which all generate rent for the authority, will also be sold under the plan.
Local Levy Increases and Broader Financial Strains
The survey of councils in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of councils will have to increase local levies next April to address the growing cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.
Medway council said it will press ahead with asset sales after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting creative strategies but certain measures take time to deliver both better provisions and financial savings,” stated Vince Maple.
He added: “We face population challenges which will continue to increase the strains we have. As a local government body, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”
Countrywide Trends and Projections
A survey of county councils this week further found local finances being stretched by the growing number of children and adults requiring Send support.
The County Councils Network projected that local shortfalls will reach £4.4bn a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have delayed planned reforms to the Send system until the coming year after a policy document outlining those reforms has been postponed.
Disadvantage and Financial Shortfalls
Based on the most recent indices of deprivation (IMD) covering UK local authorities, many key cities members were included in the most deprived in the country.
- “Participating urban centers like several major towns place in the most deprived 30 across the country under the 2025 IMD measures,” noted the report.
“Although only a single urban area is among the top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the worst-off 20% of England. The figures highlights the scale of difficulties confronting municipal officials across key cities in the next twelve months,” the report added.
“Council officials have been explicit about the need for a equitable and lasting financial structure that reflects and responds to the actual extent of deprivation and need,” stated Michael Mordey.
“Without this, councils will persist to face difficult decisions around which vital provisions to fund, and which to cut, to the detriment of their residents.”
One in five of local authorities have cut or compromised social care provision in the last year, the survey found.
