Based on a new poll of local authorities, UK councils are planning to offload community centers, sports centres, and shopping arcades as they bet on a fire sale of assets to stabilize finances.
Growing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England reported that six out of ten of local authorities are intending to sell assets to meet the rising costs of adult and children’s social care.
Local governments have previously come under fire for selling public land and open spaces to support their finances, but they argue they must proceed to raise vital cash from property disposals or declare themselves bankrupt.
The group said that a significant number of councils seeking to generate funds from a quick sale of assets represented “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and using savings to manage increasing fiscal pressures.”
Detailed Examples of Planned Sales
Medway Council in southeast England said its asset disposal plan included the sale of a retail complex in Rainham and a community venue in Rochester to generate £20m over five years.
- A local golf course and commercial properties owned in two English counties, which all generate rent for Medway council, will additionally be sold under the plan.
Council Tax Increases and Broader Fiscal Strains
The survey of local authorities in the coalition, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will need to increase council taxes next spring to address the rising cost of core provisions, increased rates of homelessness, and a persistent accommodation deficit.
The authority said it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but certain measures require time to achieve both improved services and financial savings,” said a council leader.
He continued: “There are population challenges which will persist to increase the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Patterns and Forecasts
Research of county councils this week also found local finances being stretched by the increasing figures of young people and adults requiring special educational assistance.
The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by the end of the decade, as they struggle to cope with increased demand.
Government officials have put off scheduled changes to the special educational needs framework until the coming year after a policy document setting out those reforms has been postponed.
Deprivation and Funding Gaps
Based on the most recent indices of deprivation (IMD) for UK local authorities, several key cities members were included in the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 nationally under the 2025 deprivation indices,” said the study.
“While only a single urban area is among the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the most deprived fifth of England. The figures highlights the scale of difficulties facing local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Council officials have been clear about the need for a fair and sustainable financial structure that accounts for and addresses the actual extent of deprivation and need,” said Michael Mordey.
“Lacking this, local authorities will persist to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the detriment of their communities.”
One in five of local authorities have cut or compromised social care provision in the last year, the study revealed.
