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According to a recent study of local authorities, English 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 Fiscal Pressures Drive Asset Sales

A coalition of councils for second-tier cities in the UK reported that six out of ten of councils are planning to sell assets to cover the rising costs of adult and children’s social care.

Local governments have in the past faced criticism for disposing of playing fields and land to support their finances, but they argue they must proceed to raise vital cash from asset sales or declare themselves bankrupt.

This coalition noted that a significant number of councils attempting to raise money from a quick sale of assets marked “a distinct shift from 2024, when the majority (60%) of municipal officials stated they would prioritise restructuring services and using savings to manage increasing financial challenges.”

Specific Cases of Planned Disposals

Medway Council in Kent announced its asset disposal plan included the disposal of a retail complex in a local town and a community venue in another town to generate £20m over five years.

• Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will also be sold under the strategy.

Local Levy Increases and Wider Fiscal Pressures

The survey of local authorities in the key cities group, which covers several urban centers, further found that more than 70% of authorities will have to increase local levies next April to cover the rising cost of core provisions, increased rates of housing insecurity, and a longstanding housing shortage.

Medway council explained it will proceed with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and temporary accommodation.

“We are adopting creative strategies but some of these take time to deliver both improved services and cost efficiency,” stated Vince Maple.

He added: “There are population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is very challenging.”

National Trends and Forecasts

Research of county councils recently further found council budgets being stretched by the increasing figures of children and adults requiring special educational assistance.

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.

Ministers have put off scheduled changes to the Send system until the coming year after a white paper setting out those reforms was recently delayed.

Disadvantage and Funding Shortfalls

Based on the latest indices of deprivation (IMD) covering English councils, several key cities members were among 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,” noted the report.

“While only a single urban area is in the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the worst-off 20% of the nation. The figures highlights the extent of difficulties facing municipal officials across major urban centers in the next twelve months,” the report concluded.

“Local government leaders have been clear about the need for a equitable and lasting funding system that accounts for and responds to the real levels of disadvantage and need,” said a council leader.

“Without this, local authorities will persist to face difficult decisions around which essential services to fund, and which to cut, to the disadvantage of their residents.”

A fifth of councils have cut or compromised care services in the past 12 months, the study revealed.