Surrey: The First Domino in England’s Local Government Reorganisation Strategy

The UK Government’s decision on 28 October 2025 to reorganise Surrey into two new unitary authorities East Surrey and West Surrey marks the first formal implementation of its renewed national strategy for local government reform. This means that all existing councils will be dissolved and replaced by two new unitary authorities:

• East Surrey Council: encompassing the areas of Mole Valley, Elmbridge, Epsom and Ewell, Reigate and Banstead, and Tandridge.

• West Surrey Council: covering Waverley, Guildford, Woking, Surrey Heath, Runnymede, and Spelthorne.

This move is widely seen as the starting point for a broader wave of structural changes across England, as outlined in the English Devolution White Paper and subsequent ministerial statements. In addition to the creation of the two unitary councils, the government confirmed the introduction of a directly elected mayor for Surrey. This mayor will not oversee day-to-day council services but will hold strategic powers over county-wide functions such as:

• Housing and infrastructure development

• Transport and connectivity

• Policing and public safety

The mayoral role is designed to provide a unifying strategic voice for Surrey, particularly in negotiations with central government and regional partners. It mirrors similar arrangements in other parts of England, such as Greater Manchester and the West Midlands, and is expected to play a pivotal role in shaping Surrey’s future growth and investment strategy.

Surrey’s reorganisation is not just a local event it’s a strategic signal. It demonstrates the government’s preference for larger, streamlined unitary councils that can deliver services more efficiently, withstand financial shocks, and unlock the benefits of devolution. The two-unitary model chosen for Surrey was assessed to be more financially sustainable than the alternative three-unitary proposal, and significantly more viable than a single county-wide unitary, which was modelled only for benchmarking.

What Does This Mean for Future Reorganisations?

The Surrey decision sets a precedent in several ways:

1. Two-Unitary Preference Over Fragmentation

The government’s rejection of the three-unitary model in favour of two larger councils suggests a clear preference for scale. This aligns with guidance that unitary authorities should ideally serve populations of 500,000 or more, a benchmark both East and West Surrey meet. Future reorganisations in counties like Hertfordshire, Essex, and Hampshire where multiple models are under consideration may now lean toward two-unitary or even single-unitary structures, provided they meet efficiency and sustainability criteria.

2. One Unitary Still on the Table

While Surrey did not pursue a single-unitary model, the government has clarified that the 500,000 population target is a guideline, not a rule. This opens the door for larger unitaries in counties with strong geographic coherence and shared service demands. For example, East Sussex and Hertfordshire have explored single-unitary options, and these may now gain traction if they can demonstrate financial and operational viability.

3. Strategic Authorities and Mayors

The introduction of a directly elected mayor for Surrey to oversee strategic services like housing, transport, and policing reflects the government’s ambition to combine LGR with devolution. This dual-track approach is expected to be replicated in other areas, with new unitaries forming the building blocks of mayoral combined authorities.

4. Financial Rescue as a Catalyst

The £500m bailout for Woking Borough Council underscores the role of financial distress in accelerating reorganisation. Other councils facing similar pressures may find that reorganisation offers a pathway to reset governance and unlock central support, especially if they can present compelling transformation plans.

What Does This Mean for Surrey?

The reorganisation will fundamentally reshape the governance landscape in Surrey. By April 2027, all existing councils including Surrey County Council and the 11 district and borough councils will be formally abolished. In their place, two new unitary authorities East Surrey Council and West Surrey Council will assume full responsibility for delivering all local government services.

This means that functions previously split between county and district levels such as adult social care, children’s services, education, highways, planning, housing, waste collection, and environmental health will now be managed by a single tier of government in each area. The aim is to create simpler, more accountable governance, with clearer lines of responsibility and fewer bureaucratic hurdles.

One of the most urgent challenges facing the transition is the financial situation in Woking Borough Council, which has been grappling with a debt crisis linked to failed commercial investments. The government has earmarked a £500 million bailout to stabilise Woking and ensure its safe integration into the new West Surrey Council. This intervention highlights the role reorganisation can play in resetting financial governance and restoring public confidence.

Beyond structural change, the reorganisation is expected to streamline decision-making, enabling faster responses to local needs and more coherent strategic planning. It is also seen as a catalyst for accelerating housing delivery, unlocking infrastructure investment, and attracting private sector interest, particularly in areas like town centre regeneration and green transport.

What Needs to Happen Between Now and Day One?

The journey to Vesting Day in April 2027 will be complex and multi-phased, requiring coordination across all existing councils, central government, and newly formed bodies.

2025–2026: Legislative and Preparatory Phase

• The reorganisation plan must receive Parliamentary approval, likely through a statutory instrument or dedicated legislation.

• Joint Committees will be established, bringing together representatives from the affected councils to oversee the transition and ensure continuity of services.

• A Programme Management Office (PMO) will be created to act as the central hub for planning, risk management, communications, and stakeholder engagement.

May 2026: Shadow Elections

• Residents will vote for members of the shadow councils for East and West Surrey. These bodies will not yet have formal powers but will begin shaping the governance frameworks, budget priorities, and service delivery models of the new authorities.

• The shadow councils will also play a key role in recruiting senior leadership, including Chief Executives and statutory officers.

2026–2027: Implementation Phase

• A major task will be the disaggregation of county-wide services, such as adult social care and children’s services, which must be split between the two new authorities while maintaining service quality and safeguarding.

• Council Tax harmonisation will be essential to ensure fairness across the new units, requiring careful financial modelling and public consultation.

• Staff transfers will be managed under TUPE regulations, with efforts to minimise disruption and retain talent. New organisational structures will be designed, and workforce engagement will be critical.

• Community engagement pilots, such as Neighbourhood Area Committees, will be trialled to test models of local accountability and participatory decision-making.

April 2027: Vesting Day

• The new unitary councils will formally take over all functions and assets.

• The mayoral authority will begin its strategic oversight role, coordinating housing, transport, and policing across the county and representing Surrey in national and regional forums.

Conclusion: A New Chapter for Surrey and a Signal to the Nation

Surrey’s reorganisation is more than a local governance overhaul it’s a strategic pivot point in England’s wider local government reform agenda. By choosing a two-unitary model, central government has signalled its preference for scale, simplicity, and strategic coherence, setting a precedent that other counties will now study closely. For Surrey, the next 18 months will be a period of intense transformation, requiring collaboration, clarity, and courage from all involved. The creation of East and West Surrey Councils, alongside the introduction of a directly elected mayor, offers a chance to reset public services, rebuild trust, and reimagine local leadership.

For the rest of England, Surrey’s journey may well be the first domino in a broader reorganisation strategy one that could see more counties follow suit, with fewer, larger unitary authorities emerging as the new norm. Whether this leads to two-unitary models elsewhere or even single-county unitaries, the message from Westminster is clear: change is coming, and Surrey is leading the way.