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According to a latest survey of municipal councils, English councils are planning to sell community centers, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.

Increasing Fiscal Challenges Drive Asset Sales

A coalition of councils representing major urban areas in England stated that six out of ten of councils are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.

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

This coalition noted that a significant number of councils attempting to generate funds from a fire sale of assets marked “a clear change from 2024, when the largest share (60%) of municipal officials stated they would prioritise service redesigns and utilising financial reserves to manage increasing financial challenges.”

Specific Examples of Proposed Disposals

One local authority in southeast England announced its asset disposal plan included the sale of a retail complex in a local town and a social club in Rochester to raise 20 million pounds over five years.

• A local golf course and business parks held in two English counties, which all provide rental income for Medway council, will also be sold under the strategy.

Council Tax Rises and Wider Fiscal Strains

The survey of local authorities in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will have to increase council taxes next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a longstanding housing shortage.

The authority explained it will proceed with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are adopting creative strategies but some of these take time to achieve both better provisions and cost efficiency,” said a council leader.

He continued: “We face population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”

Countrywide Trends and Forecasts

A survey of regional authorities this week also found council budgets being strained by the increasing figures of children and older individuals requiring special educational assistance.

The County Councils Network projected that council deficits will hit £4.4bn a year by the end of the decade, as they struggle to cope with increased demand.

Ministers have delayed scheduled changes to the Send system until the coming year after a white paper setting out those reforms was recently delayed.

Deprivation and Funding Gaps

Based on the most recent indices of deprivation (IMD) covering English councils, several key cities members were included in the most deprived in England.

• “Member cities like several major towns place in the most deprived 30 across the country under the latest deprivation indices,” noted the report.

“While only a single urban area is among the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the worst-off 20% of the nation. The figures highlights the extent of difficulties facing local leaders across key cities in the next twelve months,” the analysis added.

“Council officials have been clear about the necessity for a equitable and lasting financial structure that reflects and addresses the actual extent of deprivation and need,” said Michael Mordey.

“Without this, councils will persist to face impossible choices around which essential services to allocate spend to, and which to cut, to the disadvantage of their residents.”

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