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According to a new survey of municipal councils, UK councils are preparing to sell social clubs, athletic facilities, and shopping arcades as they rely on a fire sale of assets to stabilize finances.

Growing Financial Challenges Drive Asset Sales

A coalition of councils for major urban areas in England reported that 60% of councils are intending to sell assets to meet the rising costs of social services for vulnerable individuals.

Councils have previously come under fire for selling public land and open spaces to support their finances, but they argue they must continue to generate essential revenue from asset sales or declare themselves bankrupt.

This coalition noted that a high proportion of councils seeking to raise money from a fire sale of assets represented “a clear change from 2024, when the largest share (six in ten) of local leaders stated they would prioritise restructuring services and utilising financial reserves to manage increasing financial challenges.”

Specific Cases of Proposed Sales

One local authority in southeast England said its property management strategy included the sale of a retail complex in a local town and a community venue in another town to generate £20m over five years.

• A local golf course and commercial properties held in Worcestershire and Suffolk, which all generate rent for Medway council, will additionally be sold under the strategy.

Local Levy Increases and Broader Financial Strains

The survey of councils in the key cities group, which covers several urban centers, also found that more than 70% of authorities will have to increase local levies next April to cover the rising cost of essential services, higher levels of housing insecurity, and a longstanding accommodation deficit.

Medway council explained it will press ahead with asset sales after sharp increases in the cost of youth support, support for vulnerable learners, adult social care, and short-term housing.

“We are adopting innovative approaches but certain measures require time to deliver both improved services and financial savings,” said Vince Maple.

He added: “We face population challenges which will persist to increase the pressures we have. As a local government body, we had a 91% cut in our central funding from 2010-24, which is extremely difficult.”

National Patterns and Projections

Research of regional authorities recently further found council budgets being stretched by the increasing figures of young people and older individuals requiring Send support.

The County Councils Network said that local shortfalls will reach 4.4 billion pounds a year by 2029, as they grapple to cope with increased demand.

Ministers have delayed planned reforms to the special educational needs framework until the coming year after a policy document setting out those reforms has been postponed.

Deprivation and Financial Shortfalls

Based on the latest indices of deprivation (the Index of Multiple Deprivation) for English councils, several participating urban areas were included in the most disadvantaged in England.

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

“Although only a single urban area is among the top 10 for deprived neighbourhoods countrywide, cities are far more likely to be in the most deprived fifth of England. The data highlights the extent of challenges confronting municipal officials across major urban centers in the coming year,” the report added.

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

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

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