Based on a new poll of municipal councils, English councils are preparing to offload community centers, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to balance the books.
Increasing Fiscal Pressures Prompt Asset Sales
A coalition of councils for major urban areas in England reported that 60% of councils are intending to dispose of properties to meet the rising costs of adult and children’s social care.
Local governments have in the past faced criticism for disposing of public land and open spaces to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or face insolvency.
The group noted that a high proportion of councils seeking to generate funds from a quick sale of assets represented “a clear change from 2024, when the majority (six in ten) of local leaders stated they would prioritise restructuring services and utilising savings to manage increasing financial challenges.”
Detailed Examples of Planned Disposals
One local authority in southeast England said its asset disposal plan included the sale of a retail complex in a local town and a social club in Rochester 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 additionally be sold under the plan.
Local Levy Increases and Broader Financial Strains
This research of councils in the key cities group, which covers several urban centers, also found that over seven in ten of councils will need to raise local levies next spring to address the growing cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
The authority explained it will proceed with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.
“We are taking innovative approaches but some of these require time to achieve both improved services and cost efficiency,” stated Vince Maple.
He continued: “There are 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.”
Countrywide Patterns and Projections
Research of county councils recently also found council budgets being stretched by the increasing figures of young people and adults requiring Send support.
The County Councils Network projected that local shortfalls will reach £4.4bn a year by 2029, as they grapple to cope with rising needs.
Government officials have delayed scheduled changes to the Send system until next year after a policy document outlining those reforms has been postponed.
Deprivation and Funding Shortfalls
According to the most recent deprivation measures (the Index of Multiple Deprivation) covering UK local authorities, many key cities members were among the most disadvantaged in England.
- “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the latest deprivation indices,” noted the study.
“While only a single urban area is among the top 10 for disadvantaged communities countrywide, urban areas are far more likely to be in the most deprived fifth of England. The data underscores the scale of difficulties confronting municipal officials across key cities in the next twelve months,” the analysis added.
“Council officials have been explicit about the necessity for a equitable and lasting funding system that reflects and responds to the real levels of disadvantage and need,” said Michael Mordey.
“Without this, councils will persist to face impossible choices around which essential services to allocate spend to, and which to cut, to the disadvantage of their communities.”
A fifth of councils have reduced or weakened social care provision in the past 12 months, the study found.
