Based on a recent study of local authorities, UK councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a fire sale of properties to balance the books.
Growing Financial Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that 60% of local authorities are intending to sell assets to meet the rising costs of adult and children’s social care.
Local governments have in the past come under fire for selling playing fields and open spaces to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or face insolvency.
The group said that a high proportion of authorities seeking to raise money from a fire sale of assets marked “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would focus on restructuring services and using savings to weather growing fiscal pressures.”
Detailed Examples of Proposed Disposals
One local authority in southeast England said its asset disposal plan featured the disposal of a shopping centre in Rainham and a community venue in another town to raise £20m over five years.
- A local golf course and business parks held in two English counties, which all provide rental income for the authority, will also be sold under the strategy.
Local Levy Rises and Wider Fiscal Pressures
This research of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will need to raise council taxes next spring to address the rising cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
Medway council explained it will proceed with asset sales after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and short-term housing.
“We are adopting creative strategies but certain measures require time to deliver both improved services and cost efficiency,” said Vince Maple.
He continued: “We face population challenges which will continue to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”
Countrywide Trends and Projections
A survey of county councils this week further found council budgets being strained by the growing number of children and older individuals needing special educational assistance.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they grapple to manage increased demand.
Government officials have delayed planned reforms to the special educational needs framework until next year after a white paper outlining those changes has been postponed.
Disadvantage and Financial Shortfalls
Based on the most recent deprivation measures (the Index of Multiple Deprivation) for UK local authorities, several key cities members were included in the most disadvantaged in England.
- “Participating urban centers 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 top 10 for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of the nation. The figures highlights the extent of difficulties facing local leaders across key cities in the coming year,” the report added.
“Council officials have been clear about the need for a fair and sustainable funding system that reflects and responds to the real levels of deprivation and demand,” stated Michael Mordey.
“Without this, councils will persist to face difficult decisions around which essential services to fund, and which to cut, to the detriment of their communities.”
One in five of councils have reduced or weakened care services in the past 12 months, the survey found.
