Based on a latest poll of local authorities, UK councils are preparing to sell social clubs, sports centres, and retail spaces as they rely on a fire sale of properties to balance the books.
Growing Fiscal Challenges Prompt Asset Sales
A coalition of councils for major urban areas in England reported that six out of ten of local authorities are planning to sell assets to cover the rising costs of social services for vulnerable individuals.
Councils have in the past come under fire for disposing of playing fields and land to support their budgets, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.
This coalition noted that a significant number of councils seeking to raise money from a quick sale of assets represented “a clear change from 2024, when the largest share (60%) of local leaders stated they would prioritise service redesigns and utilising savings to weather increasing fiscal pressures.”
Detailed Cases of Planned Sales
One local authority in southeast England said its asset disposal plan included the sale of a shopping centre in a local town and a community venue in another town to generate £20m over the next half-decade.
- A local golf course and commercial properties held in Worcestershire and Suffolk, which all provide rental income for the authority, will additionally be disposed of under the plan.
Council Tax Rises and Wider Fiscal Strains
This research of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of councils will have to increase local levies next spring to cover the growing cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
Medway council said it will press ahead with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.
“We are taking creative strategies but some of these require time to achieve both improved services and financial savings,” stated a council leader.
He added: “There are population challenges which will continue to add to the pressures we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is very challenging.”
National Trends and Forecasts
A survey of county councils recently further found council budgets being strained by the increasing figures of young people and older individuals requiring Send support.
The County Councils Network projected that council deficits will hit £4.4bn a year by the end of the decade, as they grapple to cope with increased demand.
Ministers have delayed planned reforms to the special educational needs framework until the coming year after a policy document outlining those reforms was recently delayed.
Deprivation and Financial Shortfalls
According to the most recent deprivation measures (IMD) for UK local authorities, several participating urban areas were included in the most deprived in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 nationally under the 2025 deprivation indices,” noted the report.
“Although only one key city is in the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of the nation. The data highlights the extent of difficulties facing municipal officials across key cities in the coming year,” the report added.
“Local government leaders have been clear about the need 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 difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their communities.”
One in five of local authorities have reduced or weakened social care provision in the last year, the study found.
