English councils plan to sell off social clubs and sports centres to balance books

"English councils are planning to sell social clubs, sports centres and shopping arcades as they bet on a fire sale of assets to balance the books, according to a survey of local authorities. The key cities group of councils, which represents second-tier cities in England, said 60% of councils were planning to sell assets to meet the escalating costs of adult and children's social care."

"The group said a high proportion of councils seeking to raise money from a fire sale of assets marked a distinct shift from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and utilising financial reserves to weather increasing financial challenges. Medway council in Kent said its property management strategy included the sale of a shopping centre in Rainham and a social club in Rochester to raise 20m over five years."

"Gillingham golf club and the business parks it owns in Worcestershire and Suffolk, which all generate rent for Medway council, will also be sold under the plan. The survey of councils in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found more than 70% of councils will need to raise council taxes next April to cover the rising cost of essential services, higher levels of homelessness and a longstanding housing shortage."

Sixty percent of councils plan to sell assets to meet escalating adult and children's social care costs. Councils intend to sell social clubs, sports centres, shopping arcades and other property to raise cash and avoid insolvency. Asset sales mark a shift from 2024 priorities of service redesign and using financial reserves. Medway council plans to sell a shopping centre in Rainham, a social club in Rochester, Gillingham golf club and business parks in Worcestershire and Suffolk to raise 20m over five years. More than 70% of councils will need to raise council taxes next April to cover rising service costs, homelessness and housing shortages. Councils cite rising costs in children’s services, SEND provision, adult social care and temporary accommodation as drivers.

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