Based on a recent survey of municipal councils, UK councils are planning to sell social clubs, athletic facilities, and shopping arcades as they bet on a rapid disposal of properties to balance the books.
Increasing Financial Pressures Prompt Asset Sales
A coalition of councils for second-tier cities in England reported that six out of ten of councils are intending to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Councils have previously come under fire for selling playing fields and open spaces to shore up their budgets, but they contend they must proceed to raise vital cash from asset sales or declare themselves bankrupt.
This coalition noted that a high proportion of councils attempting to raise money from a quick sale of holdings marked “a clear change from 2024, when the majority (six in ten) of local leaders said they would focus on service redesigns and utilising financial reserves to manage increasing fiscal pressures.”
Detailed Cases of Planned Disposals
Medway Council in southeast England said its asset disposal plan included the disposal of a shopping centre in a local town and a social club in another town to generate £20m over the next half-decade.
- Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all provide rental income for the authority, will additionally be disposed of under the plan.
Council Tax Increases and Wider Fiscal Pressures
This research of councils in the key cities group, which covers several urban centers, also found that more than 70% of councils will have to raise council taxes next April to address the rising cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.
Medway council 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 short-term housing.
“We are adopting innovative approaches but certain measures require time to achieve both better provisions and cost efficiency,” said Vince Maple.
He added: “We face population challenges which will persist to add to the strains we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is extremely difficult.”
National Patterns and Projections
Research of county councils this week also found local finances being strained by the increasing figures of young people and older individuals needing Send support.
The County Councils Network said that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to manage rising needs.
Ministers have delayed planned reforms to the Send system until next year after a white paper setting out those changes has been postponed.
Deprivation and Funding Gaps
According to the most recent deprivation measures (IMD) for UK local authorities, several key cities members were among the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 across the country under the 2025 IMD measures,” noted the study.
“Although only one key city is in the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the worst-off 20% of England. The data highlights the extent of difficulties confronting local leaders across major urban centers in the coming year,” the report concluded.
“Council officials have been clear about the necessity for a fair and sustainable financial structure that reflects and responds to the real levels of disadvantage and need,” said Michael Mordey.
“Lacking this, local authorities will persist to face impossible choices around which essential services to fund, and which to reduce, to the detriment of their residents.”
A fifth of local authorities have reduced or weakened social care provision in the past 12 months, the study revealed.