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Based on a latest survey of local authorities, English councils are planning to offload social clubs, sports centres, and shopping arcades as they rely on a rapid disposal of assets to balance the books.

Growing Fiscal Pressures Drive Asset Sales

A coalition of councils for second-tier cities in England stated that six out of ten of councils are planning to sell assets to meet the escalating costs of adult and children’s social care.

Councils have in the past faced criticism for disposing of public land and land to shore up 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 councils seeking to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of local leaders stated they would prioritise service redesigns and using savings to weather increasing financial challenges.”

Detailed Examples of Planned Sales

One local authority in Kent announced its property management strategy featured the sale of a retail complex in Rainham and a community venue in Rochester to raise £20m over five years.

• Gillingham golf club and commercial properties owned in two English counties, which all generate rent for Medway council, will also be sold under the plan.

Local Levy Rises and Wider Financial Strains

This research of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of councils will have to raise council taxes next April to address the rising cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.

The authority said it will proceed with property disposals after steep rises in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.

“We are adopting creative strategies but certain measures require time to deliver both better provisions and cost efficiency,” said Vince Maple.

He continued: “We face demographic pressures 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 very challenging.”

Countrywide Patterns and Projections

A survey of regional authorities recently further found local finances being strained by the increasing figures of young people and adults requiring Send support.

The County Councils Network projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they grapple to cope with increased demand.

Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper outlining those changes was recently delayed.

Disadvantage and Financial Shortfalls

Based on the latest indices of deprivation (the Index of Multiple Deprivation) for English councils, many key cities members were among the most disadvantaged in England.

• “Member cities like several major towns rank in the most deprived 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, urban areas are much more prone to be in the worst-off 20% of the nation. The figures underscores the extent of challenges confronting municipal officials across major urban centers in the next twelve months,” the report added.

“Council officials have been explicit about the need for a equitable and lasting financial structure that reflects and responds to the real levels of disadvantage and demand,” said Michael Mordey.

“Without this, councils will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”

A fifth of local authorities have reduced or weakened care services in the past 12 months, the study revealed.