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Based on a recent study of municipal councils, English councils are planning to sell social clubs, sports centres, and retail spaces as they rely on a fire sale of assets to balance the books.

Growing Fiscal Pressures Prompt Asset Sales

The Key Cities Group representing major urban areas in the UK stated that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of adult and children’s social care.

Local governments have in the past faced criticism for selling public land and land to support their budgets, but they argue they must proceed to raise vital cash from property disposals or declare themselves bankrupt.

The group said that a significant number of authorities attempting to generate funds from a fire sale of holdings represented “a clear change from 2024, when the majority (60%) of local leaders stated they would focus on service redesigns and utilising financial reserves to manage growing fiscal pressures.”

Detailed Cases of Proposed Sales

Medway Council in southeast England announced its property management strategy featured 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.

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

Council Tax Rises and Broader Financial Strains

The survey of councils in the key cities group, which covers several urban centers, also found that over seven in ten of authorities will have to increase council taxes next spring to address the growing cost of essential services, increased rates of homelessness, and a persistent housing shortage.

Medway council explained it will proceed with asset sales after steep rises in the cost of youth support, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are taking creative strategies but some of these require time to deliver both improved services and cost efficiency,” stated Vince Maple.

He added: “There are demographic pressures which will continue to increase the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”

National Trends and Projections

Research of county councils this week further found council budgets being strained by the growing number of young people and adults needing Send support.

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

Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper setting out those changes was recently delayed.

Disadvantage and Financial Gaps

According to the latest deprivation measures (the Index of Multiple Deprivation) covering UK local authorities, many participating urban areas were among the most disadvantaged in England.

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

“Although only a single urban area is among the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the worst-off 20% of England. The figures highlights the scale of difficulties confronting municipal officials across key cities in the coming year,” the report added.

“Local government leaders have been clear about the need for a equitable and lasting funding system that accounts for and addresses the real levels of disadvantage and demand,” said a council leader.

“Lacking this, councils will continue to face difficult decisions 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 social care provision in the last year, the survey revealed.