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Based on a latest poll of municipal councils, UK councils are preparing to offload social clubs, athletic facilities, and retail spaces as they rely on a rapid disposal of properties to balance the books.

Growing Financial Pressures Prompt Asset Sales

A coalition of councils representing second-tier cities in the UK reported that six out of ten of councils are planning to sell assets to cover the escalating costs of adult and children’s social care.

Local governments have previously faced criticism for selling playing fields and open spaces to support their finances, but they argue they must proceed to raise vital cash from asset sales or face insolvency.

The group said that a high proportion of councils attempting to generate funds from a quick sale of assets marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials stated they would focus on restructuring services and utilising financial reserves to manage growing financial challenges.”

Specific Examples of Proposed Sales

One local authority in Kent announced its property management strategy included the disposal of a retail complex in Rainham and a social club in another town to generate £20m over the next half-decade.

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

Council Tax Increases and Broader Financial Pressures

This research of local authorities in the coalition, which includes Sunderland, Southampton, Gloucester and Salford, also found that more than 70% of authorities will need to raise council taxes next spring to address the growing cost of essential services, increased rates of housing insecurity, and a persistent housing shortage.

Medway council said it will proceed 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 adopting innovative approaches but certain measures require time to deliver both better provisions and cost efficiency,” said a council leader.

He continued: “There are demographic pressures which will persist to add to the strains 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

Research of county councils this week further found local finances being stretched by the growing number of children and older individuals requiring special educational assistance.

A network of councils said that council deficits will reach 4.4 billion pounds a year by the end of the decade, as they grapple to manage rising needs.

Ministers have delayed planned reforms to the Send system until next year after a policy document setting out those changes was recently delayed.

Deprivation and Financial Shortfalls

Based on the latest indices of deprivation (IMD) covering UK local authorities, many participating urban areas were included in the most disadvantaged in England.

• “Participating urban centers like Hull, Bradford, Stoke-on-Trent, Sunderland and Wolverhampton rank in the most deprived 30 across the country under the 2025 deprivation indices,” said the study.

“Although only a single urban area is in the top 10 for disadvantaged communities countrywide, urban areas are far more likely to be in the worst-off 20% of England. The data highlights the scale of difficulties confronting local leaders across key cities in the next twelve months,” the analysis added.

“Local government leaders have been explicit about the necessity for a equitable and lasting funding system that accounts for and addresses the real levels of disadvantage and need,” stated a council leader.

“Without this, councils will persist to face difficult decisions around which vital provisions to allocate spend to, and which to reduce, to the disadvantage of their residents.”

A fifth of councils have cut or compromised social care provision in the past 12 months, the study found.