🔗 Share this article

Based on a new poll of municipal councils, UK councils are preparing to sell social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of properties to balance the books.

Increasing Fiscal Pressures Prompt Asset Sales

The Key Cities Group representing major urban areas in the UK stated that 60% of local authorities are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.

Local governments have previously faced criticism for disposing of playing fields and land to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or face insolvency.

This coalition said that a significant number of councils attempting to generate funds from a quick sale of holdings marked “a clear change from 2024, when the majority (six in ten) of local leaders stated they would focus on service redesigns and utilising financial reserves to manage increasing financial challenges.”

Detailed Cases of Planned Disposals

Medway Council in southeast England announced its asset disposal plan included the disposal of a retail complex in a local town and a community venue in another town to raise 20 million pounds over five years.

• A local golf course and business parks held in two English counties, which all generate rent for the authority, will also be disposed of under the plan.

Council Tax Increases and Wider Financial Pressures

This research of councils in the key cities group, which includes several urban centers, also found that over seven in ten of councils will need to raise local levies next spring to address the rising cost of core provisions, higher levels of housing insecurity, and a longstanding housing shortage.

Medway council said it will press ahead 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 adopting creative strategies but some of these take time to achieve both better provisions and financial savings,” stated Vince Maple.

He continued: “There are demographic pressures which will continue to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”

Countrywide Trends and Forecasts

A survey of regional authorities recently further found council budgets being strained by the increasing figures of young people and adults needing special educational assistance.

A network of councils said that local shortfalls will reach £4.4bn a year by 2029, as they grapple to cope with increased demand.

Ministers have put off planned reforms to the Send system until next year after a policy document setting out those changes was recently delayed.

Disadvantage and Financial Shortfalls

Based on the most recent deprivation measures (IMD) covering UK local authorities, many key cities members were among the most disadvantaged in England.

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

“While only a single urban area is in the top 10 for disadvantaged communities countrywide, cities are far more likely to be in the most deprived fifth of England. The data highlights the extent of difficulties facing local leaders across key cities in the next twelve months,” the report added.

“Local government leaders have been clear about the need for a fair and sustainable financial structure that accounts for and responds to the real levels of deprivation and demand,” stated a council leader.

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

One in five of local authorities have reduced or weakened care services in the past 12 months, the survey found.