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English councils are planning to promote social golf equipment, sports activities centres and purchasing arcades as they wager on a hearth sale of belongings to stability the books, in response to a survey of native authorities.
The important thing cities group of councils, which represents second-tier cities in England, mentioned 60% of councils have been planning to promote belongings to fulfill the escalating prices of grownup and youngsters’s social care.
Councils have up to now come underneath hearth for promoting taking part in fields and land to shore up their funds, however argue they need to proceed to lift important money from asset gross sales or declare themselves bankrupt.
The group mentioned a excessive proportion of councils searching for to lift cash from a hearth sale of belongings marked “a definite shift from 2024, when the bulk (60%) of native leaders mentioned they might prioritise service redesigns and utilising monetary reserves to climate growing monetary challenges”.
Medway council in Kent mentioned its property administration technique included the sale of a purchasing centre in Rainham and a social membership in Rochester to lift £20m over 5 years. Gillingham golf membership and the enterprise parks it owns in Worcestershire and Suffolk, which all generate lease for Medway council, may also be offered underneath the plan.
The survey of councils in the important thing cities group, which incorporates Sunderland, Southampton, Gloucester and Salford, additionally discovered greater than 70% of councils might want to elevate council taxes subsequent April to cowl the rising price of important providers, larger ranges of homelessness and a longstanding housing scarcity.
Medway council mentioned it is going to press forward with asset gross sales after steep rises in the price kids providers, particular academic wants and incapacity (Ship) provision, grownup social care and momentary lodging.
“We’re taking revolutionary approaches however a few of these take time to ship each improved providers and price effectivity,” mentioned Vince Maple, the chief of Medway council.
He added: “There are demographic pressures which is able to proceed so as to add to the pressures we have now. As a unitary authority we had a 91% minimize in our income assist grant from 2010-24 which may be very difficult.”
A survey of county councils this week additionally discovered council budgets being stretched by the rising variety of younger individuals and adults requiring Ship assist.
The County Councils Community mentioned council deficits will attain £4.4bn a yr by 2029, as they battle to deal with elevated demand.
Ministers have delay deliberate reforms to Ship system till subsequent yr after a white paper setting out these reforms was lately delayed.
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Based on the most recent indices of deprivation (IMD) masking English councils, many key cities members have been among the many most disadvantaged in England.
“Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank within the prime 30 nationally underneath the 2025 IMD measures,” mentioned the report.
“Whereas just one key metropolis is among the many prime 10 for disadvantaged neighbourhoods nationally, city areas are way more more likely to be in probably the most disadvantaged fifth of England. The info highlights the dimensions of challenges dealing with native leaders throughout key cities within the coming yr,” the report added.
Michael Mordey, the chief of Sunderland metropolis council, mentioned: “Native authorities leaders have been clear concerning the want for a good and sustainable funding system that displays and responds to the actual ranges of deprivation and demand.
“With out this, councils will proceed to face inconceivable decisions round which important providers to allocate spend to, and which to chop, to the detriment of their communities.”
A fifth of councils have minimize or compromised social care provision up to now 12 months, the survey discovered.