Based on a recent poll of local authorities, UK councils are preparing to sell social clubs, sports centres, and retail spaces as they bet on a fire sale of assets to balance the books.
Increasing Financial Pressures Prompt Asset Sales
A coalition of councils representing second-tier cities in England stated that six out of ten of councils are intending to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of playing fields and open spaces to support their finances, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of authorities attempting to generate funds from a quick sale of holdings marked “a clear change from 2024, when the largest share (six in ten) of municipal officials said they would focus on service redesigns and utilising savings to manage increasing financial challenges.”
Detailed Cases of Proposed Disposals
One local authority in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a social club 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 Medway council, will also be disposed of under the plan.
Local Levy Increases and Wider Financial Pressures
This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will have to raise council taxes next spring to cover the growing cost of core provisions, increased rates of housing insecurity, and a longstanding housing shortage.
Medway council said it will press ahead with property disposals after steep rises in the cost of youth support, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.
“We are taking creative strategies but some of these require time to achieve both better provisions and financial savings,” said a council leader.
He added: “We face population challenges which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our central funding from over the past decade, which is extremely difficult.”
Countrywide Patterns and Forecasts
A survey of county councils recently further found local finances being strained by the increasing figures of young people and adults needing Send support.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they struggle to manage rising needs.
Ministers have delayed scheduled changes to the Send system until next year after a white paper setting out those reforms has been postponed.
Deprivation and Financial Gaps
Based on the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, several key cities members were included in the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 IMD measures,” said the report.
“Although only one key city is in the ten most deprived for deprived neighbourhoods nationally, cities are far more likely to be in the worst-off 20% of the nation. The figures underscores the extent of challenges facing municipal officials across key cities in the coming year,” the analysis added.
“Local government leaders have been clear about the need for a fair and sustainable funding system that reflects and responds to the real levels of disadvantage and demand,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which essential services to allocate spend to, and which to reduce, to the detriment of their residents.”
A fifth of local authorities have cut or compromised social care provision in the past 12 months, the survey found.
