Based on a recent survey of local authorities, UK councils are preparing to sell community centers, athletic facilities, and shopping arcades as they bet on a rapid disposal of properties to balance the books.
Increasing Financial Pressures Drive Asset Sales
The Key Cities Group representing second-tier cities in the UK reported that 60% of local authorities are intending to sell assets to meet the escalating costs of social services for vulnerable individuals.
Councils have in the past come under fire for selling public land and open spaces to shore up their budgets, but they contend they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.
This coalition noted that a significant number of councils attempting to raise money from a quick sale of assets marked “a clear change from 2024, when the majority (six in ten) of local leaders said they would focus on service redesigns and using financial reserves to manage growing financial challenges.”
Detailed Cases of Planned Sales
One local authority in Kent announced its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to generate £20m over five years.
- 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.
Local Levy Increases and Wider Fiscal Pressures
This research of councils in the key cities group, which covers several urban centers, further found that more than 70% of authorities will need to increase local levies next April to cover the growing cost of core provisions, higher levels of housing insecurity, and a persistent accommodation deficit.
The authority explained it will proceed with property disposals after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” said Vince Maple.
He continued: “There are population challenges which will persist to add to the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is very challenging.”
Countrywide Trends and Forecasts
Research of regional authorities recently further found council budgets being stretched by the growing number of children and adults requiring special educational assistance.
The County Councils Network projected that local shortfalls will hit £4.4bn a year by 2029, as they struggle to cope with rising needs.
Ministers have put off planned reforms to the special educational needs framework until next year after a policy document setting out those reforms was recently delayed.
Deprivation and Funding Gaps
According to the latest deprivation measures (IMD) for English councils, many key cities members were included in the most disadvantaged in the country.
- “Member cities like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” noted the report.
“Although only one key city is among the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of England. The data highlights the extent of challenges confronting local leaders across major urban centers in the next twelve months,” the analysis concluded.
“Council officials have been explicit about the need for a fair and sustainable financial structure that accounts for and addresses the real levels of disadvantage and need,” stated Michael Mordey.
“Lacking this, local authorities will continue to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their communities.”
A fifth of local authorities have reduced or weakened social care provision in the last year, the study revealed.
