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According to a recent study of local authorities, UK councils are planning to sell community centers, sports centres, and shopping arcades as they rely on a rapid disposal of assets to balance the books.

Increasing Fiscal Pressures Prompt Asset Sales

The Key Cities Group for major urban areas in England stated that 60% of local authorities are planning to sell assets to meet the escalating costs of adult and children’s social care.

Local governments have in the past faced criticism for disposing of playing fields and land to support their budgets, but they argue they must proceed to raise vital cash from property disposals or declare themselves bankrupt.

The group noted that a significant number of councils attempting to generate funds from a fire sale of assets marked “a clear change from 2024, when the largest share (six in ten) of local leaders said they would prioritise restructuring services and utilising savings to weather increasing fiscal pressures.”

Specific Examples of Planned Disposals

Medway Council in southeast England announced its property management strategy included the disposal of a shopping centre in Rainham and a community venue in Rochester to generate £20m over five years.

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

Local Levy Rises and Wider Fiscal Pressures

This research of councils in the key cities group, which includes Sunderland, Southampton, Gloucester and Salford, also found that over seven in ten of councils will need to increase council taxes next April to address the rising cost of core provisions, increased rates of housing insecurity, and a longstanding housing shortage.

The authority said it will press ahead with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, 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,” said a council leader.

He continued: “There are population challenges which will continue to increase the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”

Countrywide Patterns and Forecasts

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

The County Councils Network said that council deficits will reach £4.4bn a year by 2029, as they struggle to cope with rising needs.

Government officials have put off scheduled changes to the Send system until the coming year after a policy document setting out those changes has been postponed.

Deprivation and Financial Gaps

According to the most recent deprivation measures (IMD) covering English councils, many key cities members were included in the most disadvantaged in the country.

• “Member cities like several major towns place in the top 30 across the country under the 2025 deprivation indices,” said the study.

“Although only one key city is in the ten most deprived 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 next twelve months,” the analysis added.

“Council officials have been clear about the necessity for a fair and sustainable funding system that accounts for and addresses the real levels of disadvantage and demand,” stated a council leader.

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

One in five of local authorities have cut or compromised social care provision in the past 12 months, the survey revealed.