The Charity Commission’s chief executive David Holdsworth is concerned about a rise in cases where local authorities are failing in their role as charitable trustees of land and properties.

In the last three years it has dealt with 38 separate cases involving councils and charitable land.

Holdsworth has written to all council chief executives in England and Wales to remind them of their duties as charitable trustees.

A common problem highlighted in cases is council trustees changing the use or status of charitable land “or disposing of it in a way that is incompatible with its charitable purposes”.

Sometimes this is done by councils “without knowing it is charity property”, warns the regulator.

“As a fellow public sector leader, I know that these are tough times for local authorities, which are having to step up to the pressures created by ever increasing demand coupled with tighter budgets,” states Holdsworth’s letter.

“It is therefore not unsurprising that we have seen a rise in the disposal of, or a change of purpose for, charitable assets such as buildings or land as councils look to balance their budgets in challenging circumstances.

“We are however also seeing a significant number of cases where local authorities have failed to comply with their legal duties as charity trustees and we have had to take action following receipt of complaints from the public.

“Such cases can be costly and resource intensive for both local authorities and for us as the regulator. Often these changes, if not done correctly, will also result in additional budget pressures on local authorities rather than providing the additional resources initially thought.”

He added: “More than 1,200 registered charities, including vital community assets, are governed by councils.

“The law expects them to comply with key responsibilities, at the heart of which sits the requirement to exclusively further the charity’s purposes.

“We’ve seen many instances where councils haven’t done this, resulting in members of the public rightly coming to us with concerns, and we have had to step in. In some cases, our involvement could have been avoided with earlier action by the local authority.”

Holdsworth is also urging councils to read its latest guidance for local authorities as trustees. This includes specific advice for councillors and local officers, providing typical case studies highlighting common issues that can arise.

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