Based on a latest study of local authorities, English councils are planning to offload community centers, sports centres, and retail spaces as they rely on a fire sale of properties to stabilize finances.
Growing Financial Challenges Prompt Asset Sales
A coalition of councils for second-tier cities in England stated that 60% of local authorities are planning to sell assets to meet the escalating costs of adult and children’s social care.
Local governments have previously faced criticism for disposing of public land and open spaces to support their budgets, but they contend they must continue to raise vital cash from asset sales or face insolvency.
The group noted that a high proportion of councils seeking to raise money from a quick sale of holdings marked “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and using savings to weather increasing fiscal pressures.”
Specific Examples of Proposed Sales
Medway Council in southeast England announced its property management strategy included the disposal of a retail complex in Rainham and a social club in Rochester to raise 20 million pounds over the next half-decade.
- Gillingham golf club and commercial properties held in two English counties, which all provide rental income for Medway council, 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 covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of councils will need to increase council taxes next April to cover the growing cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
Medway council explained it will proceed with asset sales after steep rises in the cost of children services, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are taking innovative approaches but certain measures require time to achieve both better provisions and financial savings,” said a council leader.
He added: “There are population challenges which will continue to add to 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 extremely difficult.”
National Trends and Projections
A survey of county councils recently further 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 2029, as they grapple to cope with increased demand.
Government officials have delayed planned reforms to the special educational needs framework until next year after a policy document setting out those changes was recently delayed.
Disadvantage and Financial Shortfalls
Based on the most recent indices of deprivation (IMD) for English councils, several key cities members were included in the most deprived in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 nationally under the 2025 deprivation indices,” said the report.
“Although only one key city is among the ten most deprived for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of England. The data underscores the scale of challenges facing local leaders across key cities in the next twelve months,” the report added.
“Council officials have been explicit about the necessity for a fair and sustainable financial structure that reflects and responds to the actual extent of disadvantage and need,” said a council leader.
“Lacking this, councils will persist to face difficult decisions around which essential services to fund, and which to reduce, to the disadvantage of their residents.”
One in five of councils have reduced or weakened care services in the past 12 months, the survey revealed.
