Dozens of English local authorities are being driven to drastic measures as they confront a perfect storm of financial pressures, with a new survey revealing that the majority are now planning to sell public assets to stave off bankruptcy.
The Fire Sale Strategy
According to the Key Cities group, which represents many of England's second-tier cities, 60% of councils are now planning to sell assets to meet the escalating costs of adult and children's social care. This marks a significant shift from earlier this year, when most councils said they would prioritise service redesigns and use financial reserves to weather the crisis.
The assets facing the auction block include social clubs, sports centres, and shopping arcades - community facilities that many residents rely on. Council leaders acknowledge the controversy of such sales, particularly following past criticism for selling playing fields, but argue they have no alternative.
Case Study: Medway Council's £20m Plan
Medway Council in Kent provides a stark example of the trend. The authority has outlined a property management strategy that includes selling a shopping centre in Rainham and a social club in Rochester, aiming to raise £20 million over five years. Even income-generating assets like Gillingham Golf Club and business parks in Worcestershire and Suffolk will be sold under the plan.
Vince Maple, leader of Medway Council, explained the difficult position: "We are taking innovative approaches but some of these take time to deliver both improved services and cost efficiency." He highlighted the 91% cut in revenue support grant from 2010-2024 as particularly challenging for a unitary authority facing growing demographic pressures.
Broader Financial Pressures
The survey, which included councils in Sunderland, Southampton, Gloucester and Salford, found additional financial strains across local government. More than 70% of councils will need to raise council taxes next April to cover rising costs of essential services, higher homelessness levels, and the longstanding housing shortage.
The situation is particularly acute in special educational needs and disability (Send) provision, where growing demand is stretching council budgets to breaking point. The County Councils Network warns that council deficits will reach £4.4 billion annually by 2029 without intervention.
Compounding the problem, many of the councils considering asset sales serve some of England's most deprived communities. According to the latest indices of deprivation, member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the top 30 most deprived areas nationally.
Michael Mordey, leader of Sunderland City Council, voiced the frustration shared by many local leaders: "Local government leaders have been clear about the need for a fair and sustainable funding system that reflects and responds to the real levels of deprivation and demand." Without this, he warned, councils face impossible choices about which essential services to cut.
The human cost is already becoming apparent, with the survey finding that a fifth of councils have cut or compromised social care provision in the past 12 months alone.
