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Based on a new study of local authorities, UK councils are planning to offload social clubs, athletic facilities, and shopping arcades as they rely on a rapid disposal of assets to balance the books.

Increasing Financial Pressures Prompt Asset Sales

The Key Cities Group representing second-tier cities in England reported that six out of ten of councils are planning to dispose of properties to meet the rising costs of adult and children’s social care.

Councils have previously faced criticism for selling playing fields and open spaces to support their budgets, but they contend they must continue to raise vital cash from property disposals or declare themselves bankrupt.

The group noted that a high proportion of councils seeking to raise money from a fire sale of holdings marked “a distinct shift from 2024, when the majority (six in ten) of local leaders stated they would prioritise restructuring services and using savings to weather growing financial challenges.”

Specific Cases of Proposed Disposals

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

• A local golf course and commercial properties owned in Worcestershire and Suffolk, which all generate rent for the authority, will also be sold under the strategy.

Local Levy Rises and Broader Fiscal Pressures

This research of local authorities in the coalition, which covers several urban centers, also found that more than 70% of authorities will need to raise local levies next April to address the growing cost of essential services, increased rates of housing insecurity, and a persistent accommodation deficit.

The authority said it will press ahead with property disposals after sharp increases in the cost of children services, support for vulnerable learners, elderly and disability services, and short-term housing.

“We are adopting innovative approaches but some of these take time to achieve both improved services and financial savings,” stated a council leader.

He continued: “There are demographic pressures which will persist to add to the strains we have. As a unitary authority, we had a drastic reduction in our revenue support grant from 2010-24, which is extremely difficult.”

Countrywide Trends and Projections

A survey of county councils recently also found local finances being strained by the increasing figures of children and adults requiring Send support.

A network of councils said that council deficits will hit £4.4bn a year by 2029, as they struggle to cope with increased demand.

Government officials have put off planned reforms to the Send system until the coming year after a white paper setting out those reforms has been postponed.

Disadvantage and Financial Shortfalls

According to the latest indices of deprivation (the Index of Multiple Deprivation) covering UK local authorities, several participating urban areas were included in the most deprived in England.

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

“While only one key city is among the top 10 for deprived neighbourhoods countrywide, urban areas are much more prone to be in the most deprived fifth of the nation. The figures highlights the scale of challenges facing municipal officials across major urban centers in the coming year,” the analysis added.

“Local government leaders have been clear about the necessity for a fair and sustainable funding system that reflects and addresses the real levels of deprivation and demand,” said Michael Mordey.

“Lacking this, councils will continue 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 past 12 months, the survey found.