According to a new study of local authorities, English councils are preparing to sell social clubs, sports centres, and retail spaces as they bet on a fire sale of properties to stabilize finances.
Increasing Financial Challenges Drive Asset Sales
The Key Cities Group representing second-tier cities in England stated that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of playing fields and open spaces to support their budgets, but they contend they must proceed to generate essential revenue from property disposals or face insolvency.
This coalition said that a high proportion of councils attempting to raise money from a fire sale of assets marked “a distinct shift from 2024, when the majority (six in ten) of municipal officials stated they would prioritise service redesigns and using financial reserves to manage growing fiscal pressures.”
Specific Cases of Proposed Sales
One local authority in southeast England said its asset disposal plan featured the sale of a retail complex in a local town and a social club in Rochester to generate 20 million pounds over five years.
- Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be disposed of under the plan.
Council Tax Rises and Wider Financial Strains
The survey of councils in the coalition, which covers several urban centers, further found that over seven in ten of councils will need to increase local levies next April to cover the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.
Medway council said it will press ahead with property disposals after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking innovative approaches but some of these take time to deliver both improved services and financial savings,” said Vince Maple.
He added: “There are population challenges which will continue to increase the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
National Trends and Projections
A survey of county councils recently also found council budgets being stretched by the growing number of children and older individuals needing special educational assistance.
A network of councils said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with increased demand.
Ministers have put off planned reforms to the Send system until the coming year after a policy document setting out those reforms has been postponed.
Deprivation and Financial Shortfalls
According to the most recent indices of deprivation (the Index of Multiple Deprivation) covering English councils, several key cities members were among the most disadvantaged in the country.
- “Participating urban centers like several major towns rank in the most deprived 30 across the country under the 2025 deprivation indices,” noted the report.
“While only one key city is among the top 10 for disadvantaged communities nationally, urban areas are far more likely to be in the worst-off 20% of England. The data highlights the extent of challenges confronting municipal officials across key cities in the next twelve months,” the report concluded.
“Local government leaders have been clear about the need for a equitable and lasting financial structure that reflects and addresses the real levels of disadvantage and need,” stated a council leader.
“Without this, local authorities will persist to face difficult decisions around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
One in five of councils have cut or compromised care services in the past 12 months, the study revealed.
