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

Increasing Financial Challenges Drive Asset Sales

A coalition of councils for major urban areas in the UK stated that six out of ten of councils are intending to dispose of properties to cover the escalating costs of social services for vulnerable individuals.

Councils have in the past faced criticism for selling playing fields and open spaces to shore up their budgets, but they contend they must continue to generate essential revenue from asset sales or face insolvency.

The group said that a high proportion of authorities 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 focus on service redesigns and utilising savings to manage increasing fiscal pressures.”

Specific Examples of Planned Sales

One local authority in Kent said its asset disposal plan included the sale of a retail complex in Rainham and a social club in another town to generate 20 million pounds over the next half-decade.

• Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all provide rental income for the authority, will also be disposed of under the plan.

Council Tax Rises and Broader Financial Pressures

The survey of councils in the coalition, which covers several urban centers, further found that more than 70% of councils will have to raise council taxes next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a longstanding accommodation deficit.

The authority explained it will press ahead with asset sales after sharp increases in the cost of youth support, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.

“We are taking innovative approaches but some of these require time to deliver both improved services and financial savings,” stated Vince Maple.

He continued: “We face demographic pressures which will continue to add to the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”

Countrywide Trends and Forecasts

A survey of county councils recently also found council budgets being strained by the increasing figures of young people and older individuals needing special educational assistance.

The County Councils Network projected that local shortfalls will reach 4.4 billion pounds a year by the end of the decade, as they struggle to cope with rising needs.

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

Deprivation and Funding Gaps

Based on the most recent deprivation measures (IMD) covering English councils, several participating urban areas were among the most disadvantaged in the country.

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

“While only one key city is in the top 10 for deprived neighbourhoods nationally, urban areas are much more prone to be in the most deprived fifth of England. The data highlights the scale of challenges confronting local leaders across key cities in the coming year,” the report added.

“Council officials have been clear about the necessity for a fair and sustainable financial structure that reflects and responds to the actual extent of disadvantage and need,” said a council leader.

“Lacking this, councils will continue to face impossible choices around which vital provisions to allocate spend to, and which to reduce, to the detriment of their residents.”

One in five of local authorities have cut or compromised social care provision in the last year, the survey revealed.