Based on a recent survey of local authorities, English councils are planning to offload community centers, sports centres, and shopping arcades as they rely on a fire sale of assets to stabilize finances.
A coalition of councils representing major urban areas in England reported that 60% of local authorities are planning to sell assets to meet the rising costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for selling playing fields and land to support their budgets, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.
This coalition said that a high proportion of councils attempting to raise money from a quick sale of assets represented “a clear change from 2024, when the majority (60%) of local leaders said they would focus on service redesigns and using savings to weather growing financial challenges.”
One local authority in Kent announced its property management strategy featured the disposal of a shopping centre in a local town and a social club in another town to generate 20 million pounds over five years.
This research of local authorities in the key cities group, which includes several urban centers, also found that over seven in ten of authorities will have to increase council taxes next spring to cover the growing cost of core provisions, higher levels of homelessness, and a persistent accommodation deficit.
Medway council said it will proceed with asset sales after sharp increases in the cost of children services, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking innovative approaches but some of these take time to achieve both improved services and financial savings,” stated a council leader.
He added: “We face population challenges which will continue to increase the strains we have. As a local government body, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”
Research of county councils recently further found local finances being stretched by the increasing figures of young people and older individuals needing special educational assistance.
The County Councils Network said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.
Ministers have delayed scheduled changes to the Send system until next year after a policy document setting out those changes has been postponed.
According to the most recent indices of deprivation (IMD) covering English councils, many participating urban areas were included in the most deprived in the country.
“Although only a single urban area is in the ten most deprived for disadvantaged communities countrywide, cities 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 analysis added.
“Local government leaders have been explicit about the necessity for a fair and sustainable funding system that accounts for and addresses the real levels of deprivation and demand,” stated a council leader.
“Without this, local authorities will persist to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their communities.”
A fifth of local authorities have cut or compromised social care provision in the last year, the survey found.
A multilingual educator with over 10 years of experience in translation and language instruction.
Andrew Wagner
Andrew Wagner
Andrew Wagner
Andrew Wagner
Andrew Wagner