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According to a latest study of local authorities, English councils are planning to sell community centers, athletic facilities, and retail spaces as they bet on a rapid disposal of assets to stabilize finances.

Growing Fiscal Pressures Prompt Asset Sales

A coalition of councils for second-tier cities in England reported that six out of ten of councils are planning to sell assets to meet the rising costs of adult and children’s social care.

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

This coalition noted that a high proportion of authorities attempting to generate funds from a fire sale of assets marked “a distinct shift from 2024, when the majority (six in ten) of local leaders stated they would focus on restructuring services and utilising savings to manage growing financial challenges.”

Specific Examples of Planned Sales

One local authority in Kent said its asset disposal plan featured the sale of a retail complex in Rainham and a social club in Rochester to generate 20 million pounds over five years.

• A local golf course and commercial properties held in two English counties, which all provide rental income for Medway council, will also be sold under the strategy.

Council Tax Increases and Wider Fiscal Strains

This research of councils in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, further found that more than 70% of authorities will have to raise local levies next April to address the rising cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.

The authority explained it will press ahead with asset sales after steep rises in the cost of children services, support for vulnerable learners, adult social care, and short-term housing.

“We are taking creative strategies but some of these require time to achieve both improved services and cost efficiency,” said a council leader.

He continued: “There are population challenges which will continue to add to the strains we have. As a unitary authority, we had a drastic reduction in our central funding from 2010-24, which is very challenging.”

National Trends and Projections

Research of county councils this week also found council budgets being stretched by the growing number of children and older individuals requiring Send support.

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

Ministers have delayed planned reforms to the Send system until next year after a white paper outlining those reforms has been postponed.

Deprivation and Funding Shortfalls

According to the latest deprivation measures (the Index of Multiple Deprivation) for UK local authorities, many participating urban areas were among the most deprived in England.

• “Participating urban centers like several major towns rank in the top 30 across the country under the 2025 deprivation indices,” noted the report.

“While only one key city is among the ten most deprived for disadvantaged communities countrywide, urban areas are far more likely to be in the worst-off 20% of England. The figures highlights the scale of difficulties facing municipal officials across key cities in the next twelve months,” the report added.

“Local government leaders have been explicit about the need for a fair and sustainable financial structure that reflects and responds to the actual extent of disadvantage and need,” stated a council leader.

“Lacking this, councils will continue to face impossible choices around which vital provisions to fund, and which to reduce, to the detriment of their residents.”

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