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According to a recent survey of municipal councils, English councils are planning to offload social clubs, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.

Increasing Financial Pressures Prompt Asset Sales

A coalition of councils for major urban areas in the UK reported that six out of ten of local authorities are planning to sell assets to cover the escalating costs of social services for vulnerable individuals.

Councils have previously faced criticism for selling playing fields and land to support their budgets, but they contend they must proceed to raise vital cash from asset sales or face insolvency.

This coalition noted that a high proportion of authorities attempting to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the majority (six in ten) of municipal officials said they would prioritise service redesigns and utilising savings to manage growing financial challenges.”

Specific Examples of Proposed Disposals

One local authority in Kent announced its asset disposal plan featured the sale of a shopping centre in Rainham and a social club in another town to generate £20m over the next half-decade.

• Gillingham golf club and business parks held in two English counties, which all provide rental income for the authority, will also be sold under the strategy.

Council Tax Rises and Broader Financial Strains

The survey of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of authorities will need to increase local levies next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a persistent accommodation deficit.

The authority said it will proceed with property disposals after sharp increases in the cost of youth support, 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 deliver both improved services and cost efficiency,” said Vince Maple.

He continued: “We face population challenges which will persist to increase the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”

Countrywide Trends and Projections

Research of county councils recently further found council budgets being stretched by the growing number of children and older individuals requiring Send support.

The County Councils Network said that local shortfalls will reach £4.4bn a year by 2029, as they struggle to manage increased demand.

Government officials have put off scheduled changes to the Send system until the coming year after a white paper setting out those changes was recently delayed.

Deprivation and Funding Shortfalls

According to the most recent deprivation measures (IMD) covering UK local authorities, several participating urban areas were included in the most deprived in the country.

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

“Although only one key city is among the top 10 for disadvantaged communities countrywide, cities are much more prone to be in the worst-off 20% of the nation. The figures underscores the extent of difficulties confronting municipal officials across major urban centers in the coming year,” the analysis added.

“Council officials have been explicit about the need for a fair and sustainable funding system that reflects and addresses the actual extent of disadvantage and demand,” said Michael Mordey.

“Without this, local authorities will persist to face difficult decisions around which vital provisions to fund, and which to cut, to the disadvantage of their communities.”

One in five of local authorities have reduced or weakened care services in the last year, the study found.