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Based on a latest survey of municipal councils, UK councils are planning to offload social clubs, sports centres, and retail spaces as they rely on a fire sale of properties to balance the books.

Increasing Financial Challenges Prompt Asset Sales

A coalition of councils representing second-tier cities in the UK reported 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 finances, but they argue they must continue to raise vital cash from property disposals or face insolvency.

This coalition said that a significant number of councils attempting to raise money from a quick sale of holdings represented “a distinct shift from 2024, when the majority (60%) of local leaders said they would focus on restructuring services and utilising financial reserves to manage increasing financial challenges.”

Specific Examples of Proposed Sales

One local authority in southeast England said its asset disposal plan included the disposal of a shopping centre in Rainham and a social club in Rochester to raise £20m over the next half-decade.

• A local golf course and business parks held in Worcestershire and Suffolk, which all provide rental income for Medway council, will additionally be disposed of under the strategy.

Local Levy Increases and Broader Financial Strains

The survey of councils in the key cities group, which covers several urban centers, further found that more than 70% of councils will have to increase local levies next April to address the growing cost of essential services, higher levels of homelessness, and a persistent accommodation deficit.

Medway council explained it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are adopting innovative approaches but certain measures take time to deliver both improved services and cost efficiency,” said Vince Maple.

He continued: “We face population challenges which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our central funding from 2010-24, which is extremely difficult.”

National Trends and Projections

A survey of county councils this week also found local finances being strained by the growing number of children and adults needing Send support.

A network of councils projected that council deficits will hit £4.4bn a year by 2029, as they struggle to manage rising needs.

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

Disadvantage and Financial Gaps

Based on the latest deprivation measures (IMD) for UK local authorities, several key cities members were among the most disadvantaged in England.

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

“Although only one key city is in the ten most deprived for deprived neighbourhoods countrywide, urban areas are much more prone to be in the worst-off 20% of England. The figures underscores the scale of difficulties facing municipal officials across major urban centers in the next twelve months,” the analysis added.

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

“Without this, local authorities will continue to face difficult decisions around which vital provisions to allocate spend to, and which to cut, to the detriment of their communities.”

A fifth of councils have reduced or weakened care services in the last year, the study found.