According to a new survey of municipal councils, English councils are preparing to sell community centers, sports centres, and retail spaces as they rely on a rapid disposal of properties to stabilize finances.
Growing Financial Pressures Drive Asset Sales
The Key Cities Group representing second-tier cities in the UK reported that 60% of local authorities are intending to dispose of properties to cover the escalating costs of social services for vulnerable individuals.
Councils have in the past faced criticism for selling public land and open spaces to shore up their finances, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
This coalition noted that a significant number of authorities attempting to raise money from a quick sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of local leaders stated they would prioritise restructuring services and using savings to manage growing financial challenges.”
Detailed Examples of Planned Sales
Medway Council in Kent announced its asset disposal plan featured the sale of a shopping centre in a local town and a social club in Rochester to raise £20m over five years.
- A local golf course and business parks held in two English counties, which all generate rent for Medway council, will additionally be disposed of under the strategy.
Local Levy Increases and Broader Fiscal Strains
The survey of local authorities in the key cities group, which includes several urban centers, also found that over seven in ten of councils will have to increase council taxes next April to address the rising cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.
Medway council said it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are adopting innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” stated Vince Maple.
He continued: “There are 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 over the past decade, which is very challenging.”
Countrywide Trends and Forecasts
A survey of regional authorities this week further found local finances being stretched by the growing number of young people and older individuals needing Send support.
A network of councils projected that council deficits will hit £4.4bn a year by the end of the decade, as they struggle to manage rising needs.
Ministers have put off scheduled changes to the special educational needs framework until the coming year after a policy document outlining those changes was recently delayed.
Disadvantage and Financial Gaps
Based on the most recent deprivation measures (IMD) for UK local authorities, several key cities members were among the most deprived in the country.
- “Member cities like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” noted 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 worst-off 20% of England. The figures highlights the scale of difficulties facing municipal officials 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 reflects and responds to the real levels of deprivation and demand,” said Michael Mordey.
“Lacking this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their residents.”
One in five of councils have reduced or weakened social care provision in the past 12 months, the study revealed.
