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Based on a latest poll of local authorities, English councils are preparing to sell social clubs, sports centres, and shopping arcades as they rely on a fire sale of assets to balance the books.

Growing Fiscal Pressures Drive Asset Sales

The Key Cities Group representing major urban areas in the UK reported that six out of ten of local authorities are intending to sell assets to cover the rising costs of adult and children’s social care.

Councils have previously faced criticism for selling playing fields and open spaces to support their budgets, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.

The group said that a high proportion of authorities attempting to generate funds from a fire sale of assets represented “a clear change from 2024, when the majority (six in ten) of municipal officials stated they would focus on restructuring services and using savings to manage growing fiscal pressures.”

Specific Cases of Planned Sales

Medway Council in southeast England announced its property management strategy featured the disposal of a shopping centre in a local town and a social club in another town to raise 20 million pounds over five years.

• Gillingham golf club and commercial properties owned in two English counties, which all provide rental income for Medway council, will additionally be disposed of under the plan.

Local Levy Increases and Wider Fiscal Pressures

The survey of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of authorities will need to increase local levies next spring to cover the rising cost of essential services, increased rates of homelessness, and a longstanding accommodation deficit.

The authority said it will proceed with asset sales after steep rises in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.

“We are adopting innovative approaches but certain measures take time to achieve both improved services and financial savings,” said Vince Maple.

He added: “We face population challenges which will persist to increase 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 extremely difficult.”

National Trends and Forecasts

A survey of regional authorities this week further found council budgets being strained by the growing number of young people and adults requiring Send support.

A network of councils said that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they grapple to manage increased demand.

Government officials have delayed planned reforms to the special educational needs framework until the coming year after a white paper outlining those changes has been postponed.

Disadvantage and Financial Shortfalls

According to the latest indices of deprivation (IMD) for English councils, many key cities members were included in the most deprived in the country.

• “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the latest IMD measures,” said the study.

“Although only one key city is in the ten most deprived for deprived neighbourhoods nationally, cities are much more prone to be in the most deprived fifth of England. The figures underscores the scale of difficulties facing local leaders across major urban centers in the coming year,” the analysis added.

“Council officials have been clear about the necessity for a fair and sustainable financial structure that accounts for and addresses the actual extent of deprivation and demand,” stated Michael Mordey.

“Lacking this, councils will continue to face difficult decisions around which essential services to fund, and which to cut, to the disadvantage of their communities.”

A fifth of councils have reduced or weakened care services in the last year, the survey revealed.