Based on a new survey of local authorities, UK councils are planning to sell social clubs, athletic facilities, and retail spaces as they rely on a rapid disposal of assets to stabilize finances.
Increasing Financial Pressures Prompt Asset Sales
The Key Cities Group for major urban areas in England reported that 60% of councils are intending to sell assets to meet the rising costs of adult and children’s social care.
Local governments have in the past faced criticism for selling public land and open spaces 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 high proportion of councils attempting to generate funds from a fire sale of holdings represented “a distinct shift from 2024, when the largest share (60%) of municipal officials stated they would focus on restructuring services and utilising savings to weather growing financial challenges.”
Specific Cases of Planned Disposals
Medway Council in Kent said its asset disposal plan included the sale of a retail complex in a local town and a social club in another town to raise 20 million pounds over the next half-decade.
- A local golf course and business parks held in two English counties, which all generate rent for Medway council, will also be disposed of under the plan.
Local Levy Increases and Broader Financial Pressures
The survey of local authorities in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of councils will have to increase council taxes next April to cover the rising cost of essential services, increased rates of homelessness, and a longstanding accommodation deficit.
Medway council said it will press ahead with property disposals after sharp increases 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 take time to deliver both improved services and cost efficiency,” stated a council leader.
He added: “We face population challenges which will continue to increase the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
Research of regional authorities this week further found local finances being strained by the growing number of children and adults requiring Send support.
The County Councils Network projected that council deficits will hit £4.4bn a year by the end of the decade, as they struggle to manage 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 has been postponed.
Disadvantage and Financial Gaps
According to the most recent deprivation measures (IMD) for UK local authorities, several participating urban areas were among the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 IMD measures,” said the study.
“Although only a single urban area is among the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the worst-off 20% of the nation. The data highlights the extent of difficulties facing municipal officials across major urban centers in the next twelve months,” the analysis concluded.
“Council officials have been explicit about the need for a fair and sustainable funding system that accounts for and addresses the actual extent of deprivation and need,” stated Michael Mordey.
“Without this, local authorities will persist to face difficult decisions around which essential services to fund, and which to reduce, to the detriment of their communities.”
A fifth of local authorities have cut or compromised social care provision in the past 12 months, the survey revealed.
