According to a new study of municipal councils, UK councils are planning to offload community centers, sports centres, and retail spaces as they bet on a rapid disposal of assets to stabilize finances.
Growing Financial Challenges Drive Asset Sales
A coalition of councils representing major urban areas in England stated that six out of ten of local authorities are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of public land and open spaces to support their finances, but they contend they must continue to generate essential revenue from property disposals or declare themselves bankrupt.
The group noted that a significant number of councils attempting to raise money from a quick sale of holdings marked “a distinct shift from 2024, when the largest share (60%) of local leaders said they would prioritise service redesigns and utilising savings to weather growing fiscal pressures.”
Specific Examples of Planned Disposals
One local authority in southeast England said its asset disposal plan featured the disposal of a retail complex in a local town and a community venue in another town to generate £20m over five years.
- Gillingham golf club and commercial properties held in two English counties, which all provide rental income for the authority, will also be disposed of under the plan.
Council Tax Rises and Wider Fiscal Pressures
This research of local authorities in the coalition, which includes several urban centers, also found that more than 70% of councils will need to increase council taxes next spring to address the growing cost of essential services, higher levels of housing insecurity, and a longstanding housing shortage.
The authority said it will proceed with asset sales after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and temporary accommodation.
“We are adopting creative strategies but certain measures require time to achieve both improved services and cost efficiency,” stated a council leader.
He continued: “There are demographic pressures which will persist to increase the strains we have. As a unitary authority, we had a 91% cut in our central funding from over the past decade, which is very challenging.”
National Trends and Projections
A survey of county councils recently also found local finances being stretched by the increasing figures of young people and adults needing special educational assistance.
The County Councils Network projected that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to cope with increased demand.
Ministers have delayed scheduled changes to the Send system until next year after a white paper setting out those changes was recently delayed.
Disadvantage and Funding Shortfalls
According to the latest indices of deprivation (IMD) covering English councils, several key cities members were among the most disadvantaged in the country.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 across the country under the 2025 deprivation indices,” said the study.
“Although only a single urban area is among the top 10 for deprived neighbourhoods nationally, cities are much more prone to be in the worst-off 20% of England. The figures underscores the scale of challenges confronting municipal officials across major urban centers in the next twelve months,” the report added.
“Council officials have been clear about the need for a equitable and lasting financial structure that accounts for and addresses the real levels of deprivation and need,” stated Michael Mordey.
“Without this, councils will continue to face difficult decisions around which vital provisions to fund, and which to reduce, to the disadvantage of their communities.”
One in five of councils have reduced or weakened care services in the past 12 months, the survey revealed.
