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Based on a new poll of municipal councils, English councils are preparing to sell community centers, athletic facilities, and retail spaces as they rely on a fire sale of properties to balance the books.

Increasing Financial Pressures Prompt Asset Sales

The Key Cities Group representing major urban areas in England reported that six out of ten of local authorities are intending to sell assets to cover the rising costs of adult and children’s social care.

Councils have previously come under fire for selling playing fields and land to support their budgets, but they argue they must continue to raise vital cash from property disposals or declare themselves bankrupt.

This coalition said that a significant number of authorities seeking to raise money from a fire sale of assets represented “a clear change from 2024, when the majority (60%) of municipal officials stated they would focus on restructuring services and utilising financial reserves to manage increasing financial challenges.”

Detailed Examples of Proposed Disposals

One local authority in southeast England announced its asset disposal plan featured the sale of a retail complex in Rainham and a social club in another town to raise £20m over five years.

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

Local Levy Rises and Wider Fiscal Strains

This research of local authorities in the key cities group, which covers several urban centers, also found that more than 70% of councils will have to raise local levies next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a longstanding housing shortage.

Medway council explained it will press ahead with asset sales 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 certain measures take time to achieve both better provisions and cost efficiency,” stated a council leader.

He added: “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 central funding from over the past decade, which is extremely difficult.”

Countrywide Patterns and Forecasts

Research of county councils recently also found local finances being stretched by the growing number of children and older individuals needing Send support.

A network of councils projected that local shortfalls will hit £4.4bn a year by the end of the decade, as they struggle to cope with rising needs.

Government officials have delayed scheduled changes to the special educational needs framework until next year after a white paper outlining those changes has been postponed.

Deprivation and Financial Shortfalls

Based on the latest deprivation measures (IMD) covering English councils, several participating urban areas were among the most deprived in England.

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

“While only one key city is in the top 10 for disadvantaged communities countrywide, urban areas are much more prone to be in the worst-off 20% of the nation. The figures underscores the scale of challenges confronting local leaders across key cities in the coming year,” the report added.

“Local government leaders have been explicit about the need for a fair and sustainable funding system that accounts for and addresses the real levels of disadvantage and demand,” said a council leader.

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

One in five of councils have reduced or weakened care services in the past 12 months, the survey found.