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Based on a new study of local authorities, UK councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a rapid disposal of assets to balance the books.

Increasing Fiscal Challenges Prompt Asset Sales

A coalition of councils for second-tier cities in England stated that six out of ten of local authorities are planning to sell assets to meet the rising costs of social services for vulnerable individuals.

Local governments have in the past faced criticism for selling public land and land to support their finances, but they argue they must continue to generate essential revenue from property disposals or face insolvency.

The group said that a significant number of authorities attempting to raise money from a fire sale of assets marked “a clear change from 2024, when the majority (six in ten) of municipal officials said they would prioritise restructuring services and using financial reserves to manage increasing fiscal pressures.”

Detailed Examples of Planned Sales

One local authority in southeast England said its property management strategy included the disposal of a shopping centre in a local town and a community venue in Rochester to raise £20m over five years.

• Gillingham golf club and business parks held in two English counties, which all provide rental income for Medway council, will also be disposed of under the plan.

Council Tax Increases and Broader Financial Pressures

This research of councils in the key cities group, which includes several urban centers, also found that over seven in ten of councils will need to raise council taxes next spring to cover the rising cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.

Medway council said it will proceed with asset sales after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are taking innovative approaches but some of these require time to deliver both better provisions and financial savings,” stated Vince Maple.

He added: “We face demographic pressures which will continue to increase the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from over the past decade, which is very challenging.”

National Trends and Forecasts

Research of regional authorities this week also found council budgets being stretched by the increasing figures of children and adults requiring Send support.

A network of councils projected that local shortfalls will reach 4.4 billion pounds a year by 2029, as they grapple to cope with rising needs.

Government officials have delayed scheduled changes to the special educational needs framework until next year after a policy document setting out those changes has been postponed.

Deprivation and Financial Shortfalls

According to the latest indices of deprivation (the Index of Multiple Deprivation) for English councils, several key cities members were among the most deprived in England.

• “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the top 30 across the country under the 2025 deprivation indices,” noted the report.

“Although only a single urban area is in the top 10 for disadvantaged communities nationally, urban areas are far more likely to be in the most deprived fifth of the nation. The figures underscores the scale of challenges facing local leaders across key cities in the coming year,” the analysis added.

“Local government leaders have been explicit about the need for a equitable and lasting funding system that reflects and addresses the actual extent of disadvantage and demand,” said a council leader.

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

One in five of councils have reduced or weakened care services in the past 12 months, the survey revealed.