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Based on a new survey of local authorities, UK councils are preparing to sell community centers, sports centres, and shopping arcades as they bet on a fire sale of properties to balance the books.

Growing Financial Pressures Prompt Asset Sales

The Key Cities Group for second-tier cities in England stated that 60% of councils are planning to dispose of properties to meet the rising costs of social services for vulnerable individuals.

Local governments have in the past faced criticism for selling public land and open spaces to support their finances, but they contend they must proceed to generate essential revenue from asset sales or declare themselves bankrupt.

This coalition noted that a significant number of authorities attempting to raise money from a quick sale of assets marked “a distinct shift from 2024, when the largest share (60%) of local leaders stated they would prioritise service redesigns and using financial reserves to manage increasing fiscal pressures.”

Detailed Cases of Proposed Disposals

One local authority in southeast England announced its asset disposal plan included the disposal of a shopping centre in Rainham and a social club in Rochester to generate £20m over the next half-decade.

• Gillingham golf club and business parks owned in two English counties, which all generate rent for Medway council, will additionally be disposed of under the strategy.

Council Tax Increases and Wider Financial Strains

This research of local authorities in the key cities group, which covers several urban centers, also found that over seven in ten of authorities will have to increase council taxes next spring to cover the rising cost of essential services, increased rates of housing insecurity, and a longstanding accommodation deficit.

Medway council explained 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 creative strategies but some of these take time to achieve both improved services and financial savings,” stated a council leader.

He continued: “There are population challenges which will continue to add to the strains we have. As a local government body, we had a drastic reduction in our revenue support grant from over the past decade, which is very challenging.”

Countrywide Trends and Forecasts

A survey of regional authorities this week further found council budgets being strained by the growing number of young people and older individuals requiring special educational assistance.

The County Councils Network projected that local shortfalls will hit 4.4 billion pounds a year by the end of the decade, as they grapple to manage increased demand.

Government officials 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.

Disadvantage and Financial Shortfalls

Based on the latest indices of deprivation (IMD) covering English councils, several participating urban areas were included in the most disadvantaged in England.

• “Member cities like several major towns place in the most deprived 30 across the country under the 2025 IMD measures,” noted the report.

“Although only one key city is among the ten most deprived for disadvantaged communities countrywide, urban areas are far more likely to be in the worst-off 20% of the nation. The figures highlights the scale of difficulties facing local leaders across key cities in the coming year,” the analysis added.

“Local government leaders have been clear about the necessity for a fair and sustainable funding system that accounts for and addresses the actual extent of deprivation and need,” said a council leader.

“Without this, councils will continue to face impossible choices around which vital provisions to fund, and which to cut, to the detriment of their communities.”

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