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Based on a latest survey of local authorities, English councils are planning to sell social clubs, sports centres, and shopping arcades as they rely on a rapid disposal of assets to balance the books.

Increasing Fiscal Pressures Drive Asset Sales

The Key Cities Group for second-tier cities in England reported that 60% of local authorities are planning to sell assets to cover the rising costs of social services for vulnerable individuals.

Local governments have in the past come under fire for disposing of playing fields and open spaces to shore up their budgets, but they argue they must proceed to generate essential revenue from asset sales or face insolvency.

The group noted that a high proportion of councils seeking to generate funds from a quick sale of holdings marked “a distinct shift from 2024, when the majority (six in ten) of local leaders said they would prioritise restructuring services and utilising savings to manage growing financial challenges.”

Specific Examples of Planned Disposals

One local authority in southeast England said its asset disposal plan featured the disposal of a shopping centre in Rainham and a community venue in another town to generate 20 million pounds over the next half-decade.

• Gillingham golf club and commercial properties owned in two English counties, which all generate rent for the authority, will additionally be sold under the plan.

Local Levy Increases and Wider Financial Strains

This research of local authorities in the coalition, which covers several urban centers, further found that more than 70% of councils will need to raise council taxes next spring to address the growing cost of core provisions, increased rates of housing insecurity, and a longstanding housing shortage.

The authority said 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 adopting creative strategies but certain measures require time to deliver both better provisions and cost efficiency,” stated Vince Maple.

He continued: “There are population challenges which will continue to increase 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 Patterns and Projections

A survey of regional authorities recently also found local finances being stretched by the growing number of children and older individuals requiring special educational assistance.

The County Councils Network said that council deficits will reach 4.4 billion pounds a year by the end of the decade, as they struggle to cope with increased demand.

Ministers have delayed scheduled changes to the Send system until the coming year after a policy document outlining those reforms was recently delayed.

Disadvantage and Funding Shortfalls

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

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

“While only one key city is in the top 10 for deprived neighbourhoods nationally, urban areas are far more likely to be in the worst-off 20% of the nation. The figures underscores the scale of challenges facing local leaders across major urban centers in the next twelve months,” the analysis added.

“Council officials have been clear about the need for a equitable and lasting financial structure that accounts for and responds to the actual extent of deprivation and need,” stated Michael Mordey.

“Lacking this, councils will persist to face difficult decisions around which essential services to fund, and which to cut, to the disadvantage of their residents.”

One in five of councils have cut or compromised care services in the last year, the study found.