According to a recent survey of municipal councils, English councils are planning to sell social clubs, athletic facilities, and retail spaces as they rely on a rapid disposal of properties to stabilize finances.
Increasing Fiscal Pressures Drive Asset Sales
A coalition of councils representing second-tier cities in England stated that six out of ten of councils are intending to sell assets to cover the rising costs of social services for vulnerable individuals.
Local governments have previously come under fire for selling public land and open spaces to shore up their finances, but they contend they must continue to generate essential revenue from property disposals or face insolvency.
This coalition said that a significant number of councils seeking to raise money from a fire sale of holdings represented “a clear change from 2024, when the majority (six in ten) of local leaders said they would focus on restructuring services and utilising savings to manage growing fiscal pressures.”
Detailed Examples of Planned Sales
One local authority in Kent announced its property management strategy included the disposal of a retail complex in Rainham and a community venue in Rochester to raise £20m over five years.
- A local golf course and commercial properties owned in Worcestershire and Suffolk, which all generate rent for the authority, will additionally be disposed of under the strategy.
Council Tax Increases and Broader Financial Strains
The survey of local authorities in the coalition, which covers several urban centers, also found that over seven in ten of councils will need to increase local levies next spring to cover the growing cost of essential services, higher levels of homelessness, and a longstanding accommodation deficit.
The authority said it will proceed with property disposals after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.
“We are adopting innovative approaches but certain measures take time to deliver both better provisions and financial savings,” said a council leader.
He added: “There are population challenges which will persist to increase the strains we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”
National Patterns and Forecasts
A survey of county councils this week further found local finances being stretched by the growing number of children and adults needing special educational assistance.
The County Councils Network said that council deficits will reach £4.4bn a year by the end of the decade, as they grapple to cope with rising needs.
Ministers have delayed planned reforms to the Send system until next year after a white paper setting out those reforms has been postponed.
Deprivation and Funding Shortfalls
Based on the most recent indices of deprivation (the Index of Multiple Deprivation) for UK local authorities, several key cities members were among the most deprived in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 across the country under the latest IMD measures,” said the report.
“While only one key city is among the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the worst-off 20% of the nation. The figures highlights the extent of difficulties confronting municipal officials across major urban centers in the next twelve months,” the analysis concluded.
“Local government leaders have been clear about the necessity for a fair and sustainable funding system that accounts for and addresses the real levels of deprivation and need,” said a council leader.
“Without this, local authorities will persist to face impossible choices around which vital provisions to fund, and which to reduce, to the disadvantage of their residents.”
A fifth of local authorities have cut or compromised care services in the past 12 months, the survey found.