Based on a new study of local authorities, UK councils are preparing to offload social clubs, athletic facilities, and retail spaces as they bet on a rapid disposal of assets to balance the books.
Growing Financial Challenges Drive Asset Sales
A coalition of councils representing second-tier cities in the UK reported that 60% of councils are intending to dispose of properties to cover the escalating costs of social services for vulnerable individuals.
Local governments have in the past come under fire for selling public land and open spaces to support their budgets, 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 generate funds from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of local leaders stated they would prioritise restructuring services and utilising savings to manage growing financial challenges.”
Specific Examples of Planned Disposals
One local authority in Kent said its asset disposal plan included the disposal of a shopping centre in Rainham and a community venue in another town to raise 20 million pounds over the next half-decade.
- Gillingham golf club and business parks held in two English counties, which all generate rent for Medway council, will additionally be sold under the strategy.
Local Levy Increases and Wider Fiscal Strains
The survey of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to increase local levies next spring to cover the rising cost of core provisions, higher levels of housing insecurity, and a longstanding housing shortage.
The authority said it will press ahead with asset sales after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking innovative approaches but some of these require time to deliver both improved services and financial savings,” stated Vince Maple.
He added: “We face demographic pressures which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our central funding from over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
Research of county councils this week further found council budgets being stretched by the growing number of young people and older individuals requiring special educational assistance.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they struggle to cope with increased demand.
Government officials have delayed planned reforms to the Send system until next year after a policy document outlining those reforms was recently delayed.
Deprivation and Funding Shortfalls
Based on the most recent deprivation measures (IMD) for English councils, several participating urban areas were included in the most deprived in the country.
- “Member cities like several major towns place in the top 30 across the country under the 2025 deprivation indices,” noted the report.
“Although only a single urban area is in the top 10 for deprived neighbourhoods countrywide, cities are far more likely to be in the worst-off 20% of England. The figures highlights the extent of difficulties facing municipal officials across key cities in the coming year,” the report concluded.
“Council officials have been clear about the necessity for a equitable and lasting funding system that accounts for and addresses the actual extent of deprivation and need,” stated Michael Mordey.
“Lacking this, councils will persist to face difficult decisions around which vital provisions to fund, and which to reduce, to the detriment of their communities.”
One in five of councils have cut or compromised care services in the last year, the survey found.
