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According to a new study of municipal councils, English councils are preparing to offload social clubs, sports centres, and shopping arcades as they rely on a fire sale of properties to stabilize finances.

Growing Fiscal Challenges Prompt Asset Sales

A coalition of councils for second-tier cities in England stated that 60% of local authorities are intending to sell assets to meet the escalating costs of adult and children’s social care.

Local governments have in the past come under fire for selling playing fields and land to support their budgets, but they argue they must proceed to generate essential revenue from property disposals or face insolvency.

This coalition noted that a high proportion of authorities seeking to generate funds from a quick sale of holdings marked “a distinct shift from 2024, when the majority (six in ten) of municipal officials stated they would focus on service redesigns and utilising financial reserves to manage growing financial challenges.”

Detailed Examples of Proposed Sales

Medway Council in southeast England announced its property management strategy included the sale of a shopping centre in Rainham and a community venue in another town to raise £20m over the next half-decade.

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

Council Tax Increases and Wider Financial Pressures

The survey of local authorities in the coalition, which covers several urban centers, also found that more than 70% of councils will have to raise local levies next spring to address the rising cost of core provisions, higher levels of housing insecurity, and a longstanding accommodation deficit.

The authority explained it will proceed with property disposals after steep rises in the cost of children services, support for vulnerable learners, adult social care, and temporary accommodation.

“We are adopting creative strategies but some of these take time to achieve both improved services and cost efficiency,” said Vince Maple.

He continued: “There are population challenges which will continue to add to the strains we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”

National Patterns and Forecasts

Research of county councils recently also found council budgets being stretched by the growing number of young people and older individuals needing Send support.

A network of councils projected that council deficits will hit £4.4bn a year by 2029, as they struggle to manage rising needs.

Government officials have put off scheduled changes to the Send system until next year after a white paper setting out those changes has been postponed.

Deprivation and Funding Shortfalls

Based on the most recent deprivation measures (the Index of Multiple Deprivation) covering English councils, many participating urban areas were among the most disadvantaged in England.

• “Member cities like several major towns rank in the top 30 nationally under the 2025 deprivation indices,” said the study.

“While only a single urban area is among the ten most deprived for disadvantaged communities nationally, cities are much more prone to be in the most deprived fifth of England. The data highlights the extent of difficulties confronting local leaders across major urban centers in the next twelve months,” the analysis added.

“Council officials have been explicit about the need for a equitable and lasting financial structure that accounts for and responds to the real levels of disadvantage and demand,” stated Michael Mordey.

“Without this, councils will continue to face difficult decisions around which essential services 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 study found.