According to a new study of local authorities, English councils are preparing to offload community centers, sports centres, and shopping arcades as they bet on a fire sale of assets to balance the books.
Growing Financial Challenges Drive Asset Sales
The Key Cities Group representing second-tier cities in England reported that six out of ten of councils are intending to sell assets to cover the escalating costs of social services for vulnerable individuals.
Local governments have previously come under fire for disposing of playing fields and land 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 high proportion of councils seeking to generate funds from a fire sale of holdings represented “a distinct shift from 2024, when the majority (six in ten) of municipal officials said they would focus on service redesigns and using savings to weather growing fiscal pressures.”
Specific Cases of Planned Disposals
One local authority in southeast England announced its asset disposal plan featured the disposal of a shopping centre in Rainham and a community venue in Rochester to raise £20m over the next half-decade.
- Gillingham golf club 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 Strains
This research of councils in the key cities group, which covers several urban centers, also found that more than 70% of authorities will have to increase council taxes next spring to address the rising cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
Medway council said it will proceed with property disposals 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 certain measures take time to deliver both better provisions and cost efficiency,” said Vince Maple.
He added: “We face population challenges which will persist to increase the pressures we have. As a unitary authority, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”
Countrywide Trends and Projections
Research of county councils this week also found council budgets being stretched by the growing number of young people and adults requiring special educational assistance.
A network of councils projected that council deficits will hit £4.4bn a year by 2029, as they struggle to manage increased demand.
Government officials have delayed planned reforms to the Send system until the coming year after a policy document outlining those changes has been postponed.
Disadvantage and Financial Gaps
Based on the latest deprivation measures (IMD) covering UK local authorities, many key cities members were among the most deprived in the country.
- “Member cities like several major towns rank in the most deprived 30 across the country under the 2025 deprivation indices,” noted the report.
“Although only a single urban area is in the top 10 for disadvantaged communities nationally, cities are far more likely to be in the most deprived fifth of England. The figures highlights the extent of challenges confronting municipal officials across key cities in the coming year,” the report added.
“Local government leaders have been explicit about the need for a equitable and lasting financial structure that reflects and responds to the real levels of deprivation and demand,” 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 disadvantage of their residents.”
One in five of councils have cut or compromised social care provision in the last year, the survey revealed.
