Councils Sell Assets to Fund Soaring Social Care Costs

In a concerning trend, English councils are increasingly turning to asset sales to balance their books and meet the rising costs of adult and children's social care. According to a survey of local authorities in the key cities group, 60% of councils are planning to sell off assets like social clubs, sports centers, and shopping arcades in a "fire sale" to raise vital funds.

This shift marks a distinct change from 2024, when the majority of councils said they would prioritize service redesigns and using financial reserves to weather the growing financial challenges. However, with steep rises in the costs of children's services, special educational needs and disability (SEND) provision, adult social care, and temporary accommodation, many councils now feel they have no choice but to sell off assets.

The survey also found that over 70% of councils will need to raise council taxes next April to cover these escalating costs, while a fifth of councils have already cut or compromised social care provision in the past 12 months. Leaders of these councils have warned that without a fair and sustainable funding system, they will continue to face impossible choices about which essential services to prioritize and which to cut, to the detriment of their communities.