According to a new survey of local authorities, UK councils are preparing to sell community centers, sports centres, and shopping arcades as they bet on a rapid disposal of properties to balance the books.
Increasing Fiscal Challenges Drive Asset Sales
A coalition of councils for second-tier cities in England stated that six out of ten of councils are intending to dispose of properties to meet the rising costs of adult and children’s social care.
Councils have previously faced criticism for disposing of playing fields and open spaces to support their budgets, but they argue they must proceed to raise vital cash from property disposals or face insolvency.
The group noted that a significant number of authorities attempting to generate funds from a quick sale of holdings represented “a clear change from 2024, when the majority (six in ten) of municipal officials said they would focus on restructuring services and utilising savings to manage growing financial challenges.”
Detailed Examples of Planned Disposals
Medway Council in southeast England announced its asset disposal plan featured the disposal of a shopping centre in a local town and a social club in another town to raise £20m over five years.
- Gillingham golf club and business parks held in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be disposed of under the strategy.
Council Tax Rises and Wider Financial Strains
This research of local authorities in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of councils will need to raise council taxes next April to cover the growing cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.
The authority explained it will proceed with asset sales after steep rises in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are taking creative strategies but certain measures require time to achieve both better provisions and financial savings,” said a council leader.
He continued: “There are demographic pressures which will continue to increase the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”
National Trends and Forecasts
Research of county councils this week also found local finances being strained by the growing number of children and older individuals requiring special educational assistance.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they struggle to cope with rising needs.
Ministers have put off planned reforms 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 latest indices of deprivation (the Index of Multiple Deprivation) for UK local authorities, many key cities members were included in the most deprived in the country.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 deprivation indices,” said the report.
“Although only one key city is in the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the worst-off 20% of the nation. The data highlights the extent of difficulties confronting municipal officials across key cities in the coming year,” the report added.
“Council officials have been clear about the need for a fair and sustainable financial structure that reflects and addresses the real levels of disadvantage and need,” stated Michael Mordey.
“Without 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 residents.”
One in five of councils have cut or compromised care services in the past 12 months, the study found.
