Based on a new study of local authorities, English councils are planning to sell community centers, athletic facilities, and retail spaces as they bet on a rapid disposal of properties to balance the books.
Increasing Fiscal Pressures Drive Asset Sales
The Key Cities Group representing second-tier cities in England reported that 60% of local authorities are intending to dispose of properties to meet the escalating costs of social services for vulnerable individuals.
Local governments have previously come under fire for disposing of public land and open spaces to shore up their budgets, but they argue they must proceed to raise vital cash from property disposals or face insolvency.
The group said that a significant number of authorities seeking to generate funds from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of local leaders stated they would focus on service redesigns and utilising savings to manage growing fiscal pressures.”
Specific Cases of Planned Disposals
One local authority in Kent said its property management strategy included the disposal of a retail complex in Rainham and a community venue in another town to generate £20m over five years.
- A local golf course and business parks held in Worcestershire and Suffolk, which all generate rent for Medway council, will also be sold under the plan.
Council Tax Increases and Wider Financial Strains
The survey of councils in the key cities group, which covers several urban centers, further found that more than 70% of authorities will have to increase council taxes next spring to cover the growing cost of core provisions, higher levels of homelessness, and a persistent housing shortage.
Medway council explained it will proceed with property disposals after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are taking creative strategies but some of these take time to achieve both better provisions and financial savings,” said a council leader.
He added: “There are demographic pressures which will continue to add to the strains 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.”
National Trends and Forecasts
A survey of regional authorities recently further found council budgets being strained by the increasing figures of young people and older individuals requiring special educational assistance.
The County Councils Network said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with increased demand.
Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper outlining those reforms was recently delayed.
Deprivation and Funding Gaps
According to the latest indices of deprivation (the Index of Multiple Deprivation) covering English councils, many key cities members were among the most disadvantaged in England.
- “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 deprivation indices,” noted the report.
“While only one key city is among the top 10 for disadvantaged communities nationally, urban areas are far more likely to be in the most deprived fifth of the nation. The data highlights the extent of difficulties confronting municipal officials across major urban centers in the coming year,” the report concluded.
“Local government leaders have been explicit about the necessity for a equitable and lasting financial structure that reflects and addresses the actual extent of disadvantage and demand,” said Michael Mordey.
“Lacking this, councils will continue to face impossible choices around which vital provisions to fund, and which to cut, to the disadvantage of their communities.”
A fifth of councils have cut or compromised care services in the past 12 months, the survey found.
