According to a new survey of local authorities, UK councils are preparing to sell community centers, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.
A coalition of councils for second-tier cities in the UK stated that six out of ten of councils are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.
Local governments have in the past faced criticism for disposing of public land and open spaces to shore up their finances, but they contend they must continue to raise vital cash from property disposals or declare themselves bankrupt.
This coalition said that a significant number of authorities attempting to generate funds from a quick sale of assets marked “a clear change from 2024, when the majority (six in ten) of municipal officials stated they would focus on service redesigns and using financial reserves to manage increasing financial challenges.”
One local authority in Kent announced its asset disposal plan featured the sale of a retail complex in Rainham and a social club in another town to raise 20 million pounds over five years.
The survey of councils in the key cities group, which includes several urban centers, further found that over seven in ten of councils will need to raise local levies next spring to cover the growing cost of essential services, increased rates of homelessness, and a longstanding housing shortage.
Medway council said it will proceed with property disposals after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and temporary accommodation.
“We are taking innovative approaches but certain measures take time to achieve both improved services and cost efficiency,” stated Vince Maple.
He continued: “We face population challenges which will continue to increase the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is extremely difficult.”
A survey of regional authorities recently also found local finances being stretched by the growing number of children and older individuals requiring Send support.
The County Councils Network said that council deficits will reach 4.4 billion pounds a year by 2029, as they struggle to manage increased demand.
Ministers have delayed planned reforms to the special educational needs framework until next year after a white paper outlining those changes has been postponed.
Based on the most recent deprivation measures (IMD) for UK local authorities, many participating urban areas were among the most deprived in the country.
“While only one key city is among the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the worst-off 20% of the nation. The figures underscores the extent of difficulties confronting municipal officials across major urban centers in the next twelve months,” the report added.
“Local government leaders have been clear about the need for a fair and sustainable funding system that accounts for and responds to the real levels of disadvantage and demand,” stated a council leader.
“Without this, councils will persist to face impossible choices around which essential services to allocate spend to, and which to reduce, to the disadvantage of their communities.”
A fifth of councils have reduced or weakened care services in the past 12 months, the study revealed.
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