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Based on a new poll of municipal councils, English councils are preparing to offload social clubs, sports centres, and retail spaces as they bet on a fire sale of properties to balance the books.

Growing Fiscal Challenges Drive Asset Sales

The Key Cities Group for second-tier cities in England reported that 60% of local authorities are intending to dispose of properties to meet the rising costs of adult and children’s social care.

Local governments have previously faced criticism for disposing of playing fields and land to shore up their finances, but they argue they must continue to generate essential revenue from property disposals or declare themselves bankrupt.

This coalition said that a significant number of authorities seeking to generate funds from a quick sale of assets represented “a clear change from 2024, when the largest share (60%) of local leaders said they would prioritise service redesigns and using financial reserves to manage increasing financial challenges.”

Specific Examples of Planned Sales

One local authority in southeast England announced its property management strategy featured the disposal of a retail complex in a local town and a social club in another town to generate £20m over five years.

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

Council Tax Increases and Wider Fiscal Strains

The survey of councils in the coalition, which covers several urban centers, further found that more than 70% of councils will need to increase local levies next April to cover the growing cost of core provisions, increased rates of housing insecurity, and a persistent housing shortage.

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, elderly and disability services, and temporary accommodation.

“We are adopting creative strategies but certain measures take time to deliver both better provisions and financial savings,” said a council leader.

He added: “We face population challenges which will continue to add to the pressures we have. As a local government body, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”

National Trends and Forecasts

A survey of regional authorities recently further found council budgets being strained by the growing number of young people and older individuals requiring Send support.

The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by 2029, as they grapple to cope with increased demand.

Government officials have put off scheduled changes to the special educational needs framework until next year after a policy document setting out those changes has been postponed.

Disadvantage and Financial Shortfalls

According to the latest deprivation measures (IMD) covering UK local authorities, many participating urban areas 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 nationally under the 2025 IMD measures,” said the report.

“While only one key city is in the ten most deprived for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The figures underscores the extent of difficulties confronting municipal officials across major urban centers in the coming year,” the report concluded.

“Local government leaders have been explicit about the need for a equitable and lasting financial structure that reflects and addresses the real levels of deprivation and demand,” stated Michael Mordey.

“Without this, councils will continue to face difficult decisions around which vital provisions to fund, and which to reduce, to the disadvantage of their communities.”

One in five of local authorities have cut or compromised care services in the last year, the survey revealed.