According to a recent poll of local authorities, UK councils are planning to sell community centers, sports centres, and retail spaces as they rely on a rapid disposal of assets to stabilize finances.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England reported that six out of ten of councils are planning to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Councils have in the past faced criticism for disposing of public land and open spaces to shore up their budgets, but they argue they must continue to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of councils seeking to raise money from a fire sale of holdings represented “a clear change from 2024, when the largest share (60%) of local leaders stated they would focus on service redesigns and using savings to manage increasing financial challenges.”
Detailed Examples of Planned Disposals
One local authority in Kent said its property management strategy included the sale of a retail complex in a local town and a social club in Rochester to raise £20m over five years.
- A local golf course and commercial properties owned in two English counties, which all generate rent for the authority, will also be disposed of under the strategy.
Local Levy Rises and Broader Fiscal Strains
This research of councils in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will need to increase council taxes next April to cover the rising cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
The authority said it will proceed with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting creative strategies but certain measures require time to deliver both improved services and cost efficiency,” stated a council leader.
He added: “There are demographic pressures which will continue to increase the pressures we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
Countrywide Trends and Forecasts
Research of regional authorities recently further found local finances being strained by the increasing figures of young people and older individuals needing Send support.
A network of councils projected that local shortfalls will reach £4.4bn a year by the end of the decade, as they struggle to manage increased demand.
Ministers have put off scheduled changes to the Send system until next year after a white paper setting out those changes was recently delayed.
Disadvantage and Funding Gaps
According to the most recent deprivation measures (IMD) for English councils, several participating urban areas were included in the most disadvantaged in England.
- “Participating urban centers like several major towns rank in the most deprived 30 across the country under the latest deprivation indices,” said the study.
“Although only one key city is in the top 10 for deprived neighbourhoods countrywide, cities are much more prone to be in the worst-off 20% of England. The data underscores the scale of difficulties confronting local leaders across key cities in the next twelve months,” the report added.
“Local government leaders have been explicit about the necessity for a equitable and lasting funding system that accounts for and addresses the real levels of disadvantage and demand,” stated a council leader.
“Lacking this, local authorities will continue to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their communities.”
A fifth of local authorities have cut or compromised social care provision in the past 12 months, the survey revealed.
