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Based on a recent study of local authorities, English councils are planning to sell social clubs, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.

Growing Financial Pressures Drive Asset Sales

A coalition of councils for major urban areas in the UK reported that 60% of local authorities are planning to sell assets to meet the rising costs of social services for vulnerable individuals.

Councils have in the past come under fire for selling public land and open spaces to shore up their finances, but they contend they must proceed to raise vital cash from asset sales or face insolvency.

The group said that a high proportion of authorities attempting to generate funds from a fire sale of holdings represented “a clear change from 2024, when the majority (60%) of municipal officials stated they would prioritise restructuring services and utilising savings to manage increasing financial challenges.”

Specific Examples of Planned Sales

One local authority in Kent announced its asset disposal plan included the disposal of a retail complex in a local town and a social club in another town to generate 20 million pounds over five years.

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

Local Levy Increases and Wider Financial Strains

This research of councils 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 rising cost of core provisions, increased rates of homelessness, and a longstanding housing shortage.

The authority said it will press ahead with property disposals after steep rises in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are taking innovative approaches but certain measures require time to deliver both improved services and financial savings,” said Vince Maple.

He added: “We face 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 very challenging.”

National Trends and Projections

Research of regional authorities recently further found local finances being strained by the increasing figures of young people and older individuals requiring Send support.

The County Councils Network projected that council deficits will reach £4.4bn 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 the coming year after a policy document setting out those changes was recently delayed.

Disadvantage and Financial Shortfalls

Based on the latest deprivation measures (the Index of Multiple Deprivation) for English councils, several key cities members were included in the most disadvantaged in the country.

• “Member cities like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton place in the most deprived 30 across the country under the 2025 IMD measures,” noted the study.

“Although only one key city is among the top 10 for deprived neighbourhoods countrywide, cities are much more prone to be in the worst-off 20% of England. The data highlights the extent of challenges facing local leaders across major urban centers in the coming year,” the report concluded.

“Council officials have been clear about the need for a fair and sustainable funding system that accounts for and responds to the actual extent of disadvantage and demand,” stated Michael Mordey.

“Lacking this, councils will continue to face difficult decisions around which vital provisions to fund, and which to cut, to the detriment of their communities.”

A fifth of councils have reduced or weakened social care provision in the past 12 months, the survey found.