According to a latest poll of local authorities, English councils are preparing to offload community centers, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.
The Key Cities Group representing major urban areas in the UK reported that six out of ten of councils are planning to sell assets to cover the escalating costs of adult and children’s social care.
Councils have previously faced criticism for selling playing fields and open spaces to shore up their budgets, but they argue they must continue to raise vital cash from asset sales or declare themselves bankrupt.
This coalition noted that a high proportion of authorities seeking to raise money from a fire sale of holdings represented “a distinct shift from 2024, when the majority (60%) of municipal officials stated they would focus on restructuring services and using savings to manage increasing financial challenges.”
One local authority in southeast England announced its asset disposal plan included the sale of a retail complex in Rainham and a community venue in another town to generate £20m over the next half-decade.
This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will have to raise local levies next April to cover the rising cost of essential services, increased rates of homelessness, and a persistent housing shortage.
The authority said it will press ahead with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and temporary accommodation.
“We are adopting innovative approaches but some of these take time to achieve both improved services and financial savings,” stated Vince Maple.
He continued: “There are population challenges which will continue to add to the pressures we have. As a unitary authority, we had a drastic reduction in our central funding from over the past decade, which is very challenging.”
Research of regional authorities this week further found council budgets being strained by the increasing figures of young people and adults needing Send support.
The County Councils Network said that local shortfalls will reach £4.4bn a year by 2029, as they struggle to manage increased demand.
Ministers have put off planned reforms to the special educational needs framework until next year after a white paper outlining those changes has been postponed.
According to the most recent deprivation measures (IMD) for English councils, several participating urban areas were among the most deprived in the country.
“While only a single urban area is among the ten most deprived for deprived neighbourhoods countrywide, cities are far more likely to be in the most deprived fifth of England. The data underscores the extent of challenges facing municipal officials across major urban centers in the next twelve months,” the report concluded.
“Local government leaders have been clear about the need for a fair and sustainable financial structure that reflects and addresses the actual extent of deprivation and demand,” stated Michael Mordey.
“Lacking this, local authorities will persist to face impossible choices around which essential services to fund, and which to reduce, to the detriment of their communities.”
A fifth of councils have reduced or weakened care services in the past 12 months, the survey revealed.
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