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According to a latest survey of municipal councils, English councils are preparing to sell social clubs, athletic facilities, and retail spaces as they rely on a fire sale of assets to balance the books.

Growing Fiscal Pressures Drive Asset Sales

A coalition of councils for major urban areas in the UK stated that six out of ten of local authorities are planning to dispose of properties to meet the escalating costs of social services for vulnerable individuals.

Councils have in the past faced criticism for selling playing fields and land to support their finances, but they contend they must continue to raise vital cash from asset sales or declare themselves bankrupt.

The group noted that a high proportion of authorities attempting to raise money from a quick sale of holdings marked “a clear change from 2024, when the majority (six in ten) of municipal officials said they would prioritise service redesigns and utilising financial reserves to weather growing financial challenges.”

Specific Examples of Proposed Disposals

One local authority in southeast England announced its property management strategy included the sale of a retail complex in Rainham and a community venue in another town to raise £20m over five years.

• Gillingham golf club and business parks held in two English counties, which all generate rent for the authority, will additionally be disposed of under the plan.

Council Tax Increases and Wider Financial Pressures

This research of local authorities in the coalition, which covers several urban centers, further found that over seven in ten of authorities will need to increase council taxes next April to cover the growing cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.

Medway council explained it will press ahead with property disposals after sharp increases in the cost of children services, special educational needs and disability (Send) provision, elderly and disability services, and short-term housing.

“We are taking innovative approaches but certain measures require time to achieve both improved services and financial savings,” stated a council leader.

He continued: “There are demographic pressures which will continue to increase the strains we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”

Countrywide Patterns and Forecasts

Research of regional authorities this week further found council budgets being stretched by the increasing figures of children and adults requiring special educational assistance.

A network of councils projected that local shortfalls will hit £4.4bn a year by 2029, as they struggle to cope with increased demand.

Ministers have delayed scheduled changes to the Send system until the coming year after a white paper setting out those changes has been postponed.

Deprivation and Financial Gaps

Based on the most recent deprivation measures (IMD) for UK local authorities, many key cities members were included in the most deprived in England.

• “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 nationally under the 2025 IMD measures,” said the study.

“Although only a single urban area is among the ten most deprived for disadvantaged communities nationally, urban areas are much more prone to be in the most deprived fifth of England. The data underscores the extent of challenges facing municipal officials across major urban centers in the coming year,” the analysis added.

“Local government leaders have been clear about the necessity for a fair and sustainable financial structure that accounts for and addresses the actual extent of deprivation and need,” stated Michael Mordey.

“Lacking this, councils will persist to face difficult decisions around which vital provisions to fund, and which to reduce, to the detriment of their residents.”

A fifth of councils have cut or compromised social care provision in the last year, the survey found.