🔗 Share this article

According to a latest survey of municipal councils, English councils are planning to offload social clubs, athletic facilities, and retail spaces as they rely on a rapid disposal of properties to stabilize finances.

Increasing Fiscal Challenges Prompt Asset Sales

A coalition of councils representing major urban areas in England reported that six out of ten of local authorities are planning to sell assets to meet the rising costs of adult and children’s social care.

Local governments have previously come under fire for disposing of public land and open spaces to shore up their budgets, but they argue they must continue to generate essential revenue from asset sales or declare themselves bankrupt.

The group noted that a significant number of councils seeking to raise money from a quick sale of assets marked “a distinct shift from 2024, when the majority (60%) of local leaders said they would focus on service redesigns and utilising savings to manage growing financial challenges.”

Specific Cases of Planned Disposals

One local authority in southeast England said its property management strategy included the disposal of a retail complex in a local town and a social club in another town to generate £20m over the next half-decade.

• Gillingham golf club and commercial properties held in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be disposed of under the strategy.

Council Tax Rises and Broader Financial Strains

This research of local authorities in the key cities group, which includes several urban centers, further found that more than 70% of authorities 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.

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

“We are taking innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” said Vince Maple.

He added: “There are 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 over the past decade, which is extremely difficult.”

National Patterns and Projections

A survey of regional authorities this week also found local finances being strained by the increasing figures of young people and older individuals needing Send support.

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.

Government officials have delayed scheduled changes to the Send system until next year after a policy document outlining those reforms has been postponed.

Deprivation and Funding Shortfalls

According to the latest indices of deprivation (the Index of Multiple Deprivation) covering UK local authorities, many key cities members were included in the most disadvantaged in England.

• “Participating urban centers like several major towns place in the most deprived 30 nationally under the latest deprivation indices,” said the report.

“While only one key city is in the top 10 for disadvantaged communities nationally, cities are much more prone to be in the worst-off 20% of the nation. The data highlights the scale of difficulties facing municipal officials across major urban centers in the next twelve months,” the report added.

“Local government leaders have been explicit about the necessity for a equitable and lasting financial structure that accounts for and addresses the real levels of deprivation and need,” stated Michael Mordey.

“Without this, local authorities will persist to face impossible choices around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”

One in five of councils have cut or compromised care services in the last year, the survey revealed.