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According to a recent survey of local authorities, English councils are planning to offload community centers, athletic facilities, and shopping arcades as they rely on a fire sale of properties to stabilize finances.

Increasing Financial Pressures Drive Asset Sales

The Key Cities Group representing second-tier cities in England reported that 60% of local authorities are intending to dispose of properties to meet the escalating costs of adult and children’s social care.

Local governments have in the past faced criticism for disposing of playing fields and open spaces to support their finances, but they argue they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.

The group noted that a significant number of authorities attempting to raise money from a fire sale of holdings marked “a distinct shift from 2024, when the largest share (six in ten) of municipal officials stated they would prioritise restructuring services and utilising financial reserves to weather increasing fiscal pressures.”

Specific Cases of Planned Sales

Medway Council in Kent said its asset disposal plan included 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 business parks held in Worcestershire and Suffolk, which all generate rent for the authority, will additionally be disposed of under the strategy.

Local Levy Increases and Broader Financial Pressures

The survey of councils in the key cities group, which covers Sunderland, Southampton, Gloucester and Salford, further found that over seven in ten of authorities will need to increase local levies next spring to cover the growing cost of essential services, increased rates of housing insecurity, and a persistent accommodation deficit.

The authority explained it will press ahead with asset sales after sharp increases in the cost of children services, special educational needs and disability (Send) provision, adult social care, and temporary accommodation.

“We are taking innovative approaches but certain measures take time to deliver both improved services and cost efficiency,” stated Vince Maple.

He continued: “There are demographic pressures which will continue to increase the pressures we have. As a unitary authority, we had a 91% cut in our revenue support grant from 2010-24, which is extremely difficult.”

National Trends and Projections

Research of regional authorities this week also found council budgets being strained by the growing number of young people and older individuals requiring Send support.

The County Councils Network said that council deficits will hit 4.4 billion pounds a year by 2029, as they struggle to cope with rising needs.

Ministers have put off planned reforms to the special educational needs framework until the coming year after a policy document setting out those reforms was recently delayed.

Disadvantage and Financial Shortfalls

Based on the latest deprivation measures (the Index of Multiple Deprivation) covering UK local authorities, many participating urban areas were among the most deprived in the country.

• “Participating urban centers like several major towns place in the most deprived 30 nationally under the 2025 deprivation indices,” said the study.

“While only a single urban area is in the ten most deprived for deprived neighbourhoods nationally, urban areas are far more likely to be in the most deprived fifth of the nation. The data highlights the scale of challenges facing local leaders across key cities in the coming year,” the report added.

“Local government leaders have been explicit about the necessity for a fair and sustainable funding system that reflects and addresses the actual extent of disadvantage and demand,” said a council leader.

“Without this, councils will continue to face difficult decisions around which essential services to fund, and which to cut, to the detriment of their residents.”

One in five of councils have cut or compromised care services in the past 12 months, the survey revealed.