Based on a new poll of municipal councils, UK councils are planning to sell social clubs, sports centres, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England reported that six out of ten of local authorities are intending to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of public land and land to shore up their finances, but they argue they must proceed to generate essential revenue from property disposals or declare themselves bankrupt.
The group said that a significant number of councils seeking to raise money from a quick sale of holdings marked “a clear change from 2024, when the largest share (60%) of municipal officials stated they would focus on service redesigns and using financial reserves to manage growing fiscal pressures.”
Detailed Cases of Proposed Sales
Medway Council in southeast England announced its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to generate £20m over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for the authority, will additionally be sold under the strategy.
Council Tax Rises and Broader Fiscal Strains
The survey of councils in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will have to raise council taxes next spring to address the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.
Medway council explained it will press ahead with asset sales 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 adopting innovative approaches but certain measures require time to achieve both better provisions and cost efficiency,” stated a council leader.
He continued: “There are population challenges which will continue to increase 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 very challenging.”
National Trends and Projections
A survey of county councils this week also found council budgets being stretched by the growing number of young people and adults needing Send support.
The County Councils Network projected that council deficits will hit 4.4 billion pounds a year by the end of the decade, as they grapple to cope with increased demand.
Government officials have put off planned reforms to the special educational needs framework until next year after a white paper outlining those changes has been postponed.
Disadvantage and Funding Gaps
Based on the most recent indices of deprivation (IMD) for English councils, many key cities members were among the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 IMD measures,” said the study.
“While only one key city is in the top 10 for deprived neighbourhoods nationally, cities are much more prone to be in the worst-off 20% of England. The data underscores the extent of challenges confronting municipal officials across major urban centers in the next twelve months,” the report concluded.
“Council officials have been clear about the need for a fair and sustainable financial structure that reflects and responds to the real levels of deprivation and need,” stated Michael Mordey.
“Without this, councils will persist to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the detriment of their communities.”
A fifth of local authorities have cut or compromised care services in the past 12 months, the survey revealed.
