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Based on a latest study of local authorities, English councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.

Growing Financial Pressures Prompt Asset Sales

The Key Cities Group for major urban areas in the UK stated that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of adult and children’s social care.

Councils have previously faced criticism for selling playing fields and open spaces to support their finances, but they contend they must proceed to raise vital cash from asset sales or face insolvency.

The group noted that a significant number of authorities seeking to generate funds from a fire sale of assets marked “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and utilising financial reserves to manage growing fiscal pressures.”

Specific Cases of Proposed Disposals

Medway Council in Kent announced its property management strategy included the disposal of a shopping centre in Rainham and a community venue in another town to generate £20m over five years.

• Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all generate rent for the authority, will also be disposed of under the plan.

Council Tax Increases and Wider Fiscal Pressures

The survey of councils in the coalition, which covers several urban centers, also found that over seven in ten of authorities will have to increase council taxes next April to cover the rising cost of essential services, higher levels of homelessness, and a persistent accommodation deficit.

Medway council explained it will press ahead with property disposals after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.

“We are adopting innovative approaches but some of these take time to deliver both improved services and cost efficiency,” stated Vince Maple.

He added: “There are population challenges which will persist to increase the pressures 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.”

Countrywide Patterns and Forecasts

A survey of county councils recently also found local finances being stretched by the increasing figures of young people and adults requiring Send support.

A network of councils projected that local shortfalls will hit £4.4bn a year by the end of the decade, as they grapple to manage rising needs.

Ministers have put off scheduled changes to the Send system until next year after a white paper outlining those changes was recently delayed.

Disadvantage and Financial Shortfalls

According to the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, several participating urban areas were included in the most disadvantaged in the country.

• “Participating urban centers like several major towns place in the most deprived 30 across the country under the latest IMD measures,” noted the report.

“While only one key city is in the top 10 for deprived neighbourhoods nationally, cities are much more prone to be in the most deprived fifth of the nation. The figures highlights the scale of challenges confronting municipal officials across major urban centers in the next twelve months,” the analysis concluded.

“Council officials have been explicit about the necessity for a fair and sustainable financial structure that reflects and addresses the real levels of disadvantage and need,” said 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 local authorities have cut or compromised social care provision in the last year, the study found.