Based on a recent survey of local authorities, UK councils are planning to sell community centers, sports centres, and shopping arcades as they bet on a rapid disposal of assets to balance the books.
Increasing Fiscal Challenges Drive Asset Sales
A coalition of councils representing second-tier cities in the UK reported that 60% of councils are intending to sell assets to meet the rising costs of social services for vulnerable individuals.
Local governments have previously faced criticism for disposing of public land and open spaces to support their budgets, but they contend they must continue to generate essential revenue from property disposals or face insolvency.
This coalition noted that a high proportion of councils seeking to raise money from a fire sale of holdings represented “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would focus on service redesigns and utilising savings to weather increasing fiscal pressures.”
Specific Examples of Planned Disposals
One local authority in southeast England announced its property management strategy included the sale of a shopping centre in Rainham and a community venue in another town to generate 20 million pounds over five years.
- Gillingham golf club and business parks held in two English counties, which all provide rental income for the authority, will additionally be disposed of under the strategy.
Council Tax Rises and Broader Financial Pressures
This research of councils in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will need to raise local levies next April to cover the growing cost of essential services, increased rates of housing insecurity, and a longstanding accommodation deficit.
The authority explained it will proceed with property disposals after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking creative strategies but certain measures take time to deliver both improved services and cost efficiency,” stated Vince Maple.
He added: “We face population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Patterns and Projections
A survey of county councils this week also found council budgets being stretched by the growing number of young people and older individuals requiring Send support.
A network of councils said that local shortfalls will hit £4.4bn a year by 2029, as they grapple to cope with increased demand.
Government officials have put off planned reforms to the special educational needs framework until next year after a white paper outlining those reforms was recently delayed.
Disadvantage and Financial Shortfalls
Based on the most recent indices of deprivation (IMD) covering English councils, many participating urban areas were among the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 deprivation indices,” said the report.
“While only one key city is in the ten most deprived for deprived neighbourhoods countrywide, cities 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 key cities in the coming year,” the analysis added.
“Local government leaders have been explicit about the necessity for a equitable and lasting financial structure that reflects and responds to the actual extent of disadvantage and demand,” stated Michael Mordey.
“Lacking this, local authorities will continue to face impossible choices around which essential services to allocate spend to, and which to reduce, to the detriment of their communities.”
A fifth of councils have reduced or weakened social care provision in the past 12 months, the study found.
