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According to a new study of local authorities, UK councils are planning to sell community centers, sports centres, and shopping arcades as they bet on a rapid disposal of properties to balance the books.

Growing Financial Challenges Prompt Asset Sales

The Key Cities Group representing major urban areas in England reported that 60% of councils are planning to dispose of properties to cover the rising costs of adult and children’s social care.

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

This coalition said that a significant number of authorities attempting to generate funds from a quick sale of holdings marked “a clear change from 2024, when the largest share (60%) of local leaders stated they would focus on service redesigns and using financial reserves to weather increasing fiscal pressures.”

Specific Examples of Proposed Disposals

Medway Council in southeast England announced its asset disposal plan included the disposal of a shopping centre in a local town and a social club in another town to raise 20 million pounds over the next half-decade.

• Gillingham golf club and commercial properties owned in two English counties, which all generate rent for Medway council, will also be sold under the strategy.

Council Tax Increases and Broader Financial Pressures

This research of local authorities in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of authorities will have to increase council taxes next April to address the rising cost of essential services, higher levels of housing insecurity, and a persistent 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, adult social care, and temporary accommodation.

“We are taking innovative approaches but certain measures take time to deliver both better provisions and financial savings,” said Vince Maple.

He continued: “We face population challenges which will persist to add to the pressures we have. As a local government body, we had a drastic reduction in our revenue support grant from 2010-24, which is very challenging.”

National Patterns and Forecasts

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

The County Councils Network projected 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 put off planned reforms to the special educational needs framework until the coming year after a policy document outlining those changes was recently delayed.

Disadvantage and Financial Shortfalls

Based on the latest deprivation measures (IMD) covering UK local authorities, many key cities members were included in the most disadvantaged in the country.

• “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,” said the study.

“Although only one key city is in the ten most deprived for disadvantaged communities countrywide, cities are much more prone to be in the most deprived fifth of the nation. The data underscores the extent of difficulties facing local leaders across key cities in the coming year,” the report added.

“Council officials have been explicit about the necessity for a fair and sustainable funding system that accounts for and addresses the actual extent of disadvantage and need,” stated a council leader.

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

A fifth of councils have cut or compromised care services in the last year, the study revealed.