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Based on a latest poll of local authorities, UK councils are planning to offload community centers, sports centres, and retail spaces as they rely on a rapid disposal of assets to balance the books.

Increasing Fiscal Challenges Prompt Asset Sales

The Key Cities Group representing major urban areas in England reported that six out of ten of councils are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.

Local governments have in the past faced criticism for disposing of public land and land to shore up their budgets, but they contend they must proceed to generate essential revenue from property disposals or face insolvency.

This coalition said that a high proportion of authorities seeking to raise money from a fire sale of assets marked “a clear change from 2024, when the majority (60%) of local leaders said they would prioritise service redesigns and using savings to manage growing financial challenges.”

Detailed Examples of Planned Disposals

One local authority in southeast England announced its property management strategy included the sale of a retail complex in a local town and a community venue in another town to raise 20 million pounds over five years.

• Gillingham golf club and business parks owned in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be sold under the strategy.

Local Levy Increases and Wider Financial Strains

The survey of local authorities in the coalition, which includes several urban centers, also found that over seven in ten of councils will need to increase council taxes next April to cover the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.

Medway council explained it will proceed with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.

“We are taking innovative approaches but some of these take time to achieve both better provisions and cost efficiency,” stated Vince Maple.

He continued: “There are population challenges which will persist to add to the pressures we have. As a local government body, we had a 91% cut in our central funding from over the past decade, which is very challenging.”

National Trends and Projections

A survey of regional authorities recently also found council budgets being strained by the growing number 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 struggle to cope with increased demand.

Ministers have put off planned reforms to the special educational needs framework until the coming year after a policy document setting out those changes was recently delayed.

Disadvantage and Funding Gaps

Based on the most recent deprivation measures (the Index of Multiple Deprivation) for English councils, many key cities members were among the most disadvantaged in England.

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

“Although only a single urban area is in the top 10 for deprived neighbourhoods countrywide, cities are far more likely to be in the most deprived fifth of England. The figures highlights the extent of challenges confronting municipal officials across key cities in the coming year,” the analysis concluded.

“Council officials have been clear about the need for a fair and sustainable funding system that accounts for and addresses the real levels 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.”

One in five of local authorities have cut or compromised social care provision in the last year, the survey found.