According to a latest survey of local authorities, English councils are planning to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of properties to balance the books.
A coalition of councils representing second-tier cities in England reported that six out of ten of councils are intending to dispose of properties to cover the rising costs of social services for vulnerable individuals.
Councils have in the past come under fire for disposing of playing fields and land to support their finances, but they contend they must proceed to raise vital cash from property disposals or declare themselves bankrupt.
This coalition said that a significant number of authorities seeking to generate funds from a fire sale of holdings represented “a clear change from 2024, when the largest share (60%) of municipal officials stated they would prioritise restructuring services and utilising savings to weather growing fiscal pressures.”
Medway Council in southeast England said its property management strategy included the sale of a shopping centre in a local town and a community venue in another town to generate 20 million pounds over five years.
This research of local authorities in the key cities group, which covers several urban centers, also found that over seven in ten of councils will have to raise council taxes next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a longstanding accommodation deficit.
Medway council said it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and temporary accommodation.
“We are taking innovative approaches but certain measures require time to deliver both better provisions and financial savings,” said Vince Maple.
He continued: “We face population challenges which will persist 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.”
A survey of county councils recently also found council budgets being stretched by the increasing figures of young people and adults requiring special educational assistance.
A network of councils said that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they struggle to manage increased demand.
Ministers have put off scheduled changes to the Send system until next year after a policy document outlining those reforms was recently delayed.
According to the latest indices of deprivation (IMD) covering English councils, several participating urban areas were included in the most deprived in England.
“While only a single urban area is in the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the worst-off 20% of England. The data underscores the extent of difficulties facing municipal officials across key cities in the coming year,” the report added.
“Local government leaders have been clear about the necessity for a fair and sustainable funding system that reflects and addresses 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 reduce, to the detriment of their communities.”
A fifth of councils have cut or compromised care services in the past 12 months, the study found.
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