Our response to the government's consultation

Our preference is for the development of three unitary councils in Surrey and our response will focus on the benefit of this proposal.

The submitted proposal for this makes a strong and reasoned case for creating three new councils in Surrey – East Surrey, North Surrey and West Surrey. These areas are based on how people actually live, work, travel and do business in Surrey. They reflect real communities and local economies.

Each of the three areas has its own identity and economic links:

• East Surrey includes places like Caterham, Dorking, Epsom, Oxted and Reigate. It has strong links to London and Gatwick Airport, a strong rural economy and many people travel within this area for work and services.
• North Surrey includes towns like Egham, Esher, Staines, Walton and Weybridge. It’s closely connected to London and Heathrow, with a strong economy based on creative industries, tech and professional services.
• West Surrey includes Camberley, Farnham, Godalming, Guildford and Woking. It’s a hub for innovation, research and education, with strong transport links and a growing economy.

The proposal shows these three areas already work well together in terms of housing, transport and local services. They also have similar challenges and opportunities, which means each new council can focus on what matters most to its communities.

The proposal avoids creating councils that are too big or too disconnected from local people. Two unitaries would be too large to retain such effective links to residents and businesses. Three also avoids splitting up areas that naturally belong together, which is likely to lead to better planning for housing, transport and jobs.

The proposal also shows that each new council would have a strong enough economy and tax base, without putting any one area at a disadvantage.

The proposed East Surrey unitary in the three unitary proposal includes Epsom and Ewell, Mole Valley, Reigate and Banstead and Tandridge. This is a well-established and widely recognised grouping as described and clearly evidenced in the proposal. The areas proposed have proven and functional relationships and established partnerships developed over many years.

Creating three new councils – East Surrey, North Surrey, and West Surrey – will deliver the outcomes the government is seeking. It is supported by strong evidence, detailed financial and service analysis and a realistic plan for implementation.

The proposal meets all six of the government’s criteria:

Improving services and value for money.

Bringing services together under one council in each area will reduce duplication, improve access and allow for more responsive delivery, particularly for key services like social care, children’s services, housing and homelessness. These changes are backed by a clear plan for safe transition and long-term improvement.

Ensuring financial sustainability.

Financial modelling demonstrates the three new councils would be viable and deliver significant savings while managing transition costs and risks responsibly.

The proposed model significantly improves financial sustainability by comparison to the current system of local government, but reorganisation alone would not be sufficient to tackle existing medium-term budget gaps and those likely to be caused by the Fair Funding Review.

Transformative change alongside reorganisation will be necessary, supported by sustainable multi-year settlements set at an appropriate level. A sustainable solution for unfunded debt in Woking will also need to be identified, which does not disadvantage residents. The proposal sets out that this will require Government to write off the unfunded debt in order to ensure new unitaries are created with a sound financial base.

Reflecting local identity.

The proposed councils are based on places people identify with. They reflect how people live, travel and use services and would allow decisions to be made closer to communities.

Public engagement supports this approach, with 63% of residents surveyed across Surrey preferring the three unitary model.

Our own Residents’ Survey shows 40% of residents would prefer three unitaries, with 10% preferring three and 35% did not know. .

Supporting devolution.

The proposal also outlines how the new councils would work with a directly elected Mayor of Surrey and a Mayoral Strategic Authority to unlock devolved powers and funding, balancing local leadership with strategic coordination.

Enabling growth.

The three unitary authorities identified are based on evidence that takes into account local functioning economic geographies and strengths, housing market areas, travel to work patterns, environmental considerations, local population and workforce characteristics. This forms a robust basis for future economic growth and housing and infrastructure delivery, recognising that different local government support and intervention will be needed to reflect the diversity of opportunity and constraints across the county. The East Surrey geography included within this proposal best reflects what the evidence indicates for our own local area, and a geography that our residents and businesses recognise and identify with.

Strengthening local democracy.

The proposal for three unitary authorities in Surrey is based on real, functional communities and economic areas. It also addresses democratic accountability. By replacing the current two-tier system with three unitary councils, the proposal would simplify governance and make it easier for residents to understand who is responsible for what. It includes plans for new ways to involve communities in shaping local services.

Smaller unitaries mean that councils (and councillors) are closer to the electorate. For this to work and to avoid a democratic deficit, the proposal sets out why three councillors per ward will be important.

The proposal is well-evidenced, deliverable and focused on the outcomes the government has set. It offers a simpler, stronger, and more sustainable model of local government for Surrey.

The proposal for three new councils in Surrey is the right size to deliver efficiencies, improve capacity and make local government more financially resilient. While the government’s guidance suggests a population of around 500,000 for each new council, it has been made clear this is a guide and not a hard rule. The proposal explains why slightly smaller councils make more sense for Surrey and how they will still deliver the outcomes the government is looking for.

Each of the three proposed councils would serve a population of between 330,000 and 480,000. These are still large, capable organisations and the proposal shows that they would be financially sustainable and able to deliver high-quality services. The slightly smaller size is a deliberate choice to ensure each council reflects real communities and economic areas, rather than drawing artificial boundaries just to meet a number.

The proposal includes strong evidence to support this:

• Each council would have a strong local economy and tax base. Together, they would cover all of Surrey’s £51 billion economy, with each council contributing between £16 billion and £18 billion in GVA.
• The financial modelling shows that the three-unitary model would deliver significant savings – over £60 million by year four – by reducing duplication, streamlining management, and transforming services.
• These savings would help deal with future financial pressures, including rising demand for services like social care and housing, and the impact of inflation and funding reform.
• The proposal includes a clear plan for managing the costs of the transition, including using existing budgets and capital receipts to fund the changes. It also includes a phased approach to transformation, so that services can continue safely while improvements are made over time.

The proposal also explains how the new councils would be better able to withstand financial shocks. By operating at a larger scale than the current districts, they would be more resilient and better able to manage risk. At the same time, they would be small enough to stay connected to local communities and make decisions that reflect local needs.

Finally, the proposal is honest about the financial challenges facing Surrey, including the high levels of debt in some councils. It makes a clear case that the government will need to work with Surrey to address these issues – especially the debt in Woking Borough Council – to make reorganisation a success.

The proposal strikes the right balance between size, efficiency, and local identity. It is backed by strong evidence and designed to deliver better services and stronger finances for the long term.

As of 17 June 2025, councils in Surrey in Best Value intervention are Spelthorne Borough Council and Woking Borough Council.

As of 17 June 2025, the council in Surrey in receipt of Exceptional Financial Support in 2025/26 is Woking Borough Council.

The proposal for three unitaries provides a credible and well-considered route to putting local government in the area on a firmer footing, including for those councils currently in Best Value intervention or in receipt of Exceptional Financial Support.

The financial challenges facing Woking and Spelthorne are acknowledged directly and transparently in the proposal. In Woking’s case, the scale of the debt is clearly recognised as a structural issue that cannot be absorbed by a new unitary authority without undermining its viability. The proposal is clear that this must be addressed through national action—specifically, the writing off of Woking’s stranded debt as part of the government’s forthcoming Spending Review. This is a necessary step to ensure the new council which includes Woking can be financially sustainable from day one.

49% of respondents to our Residents’ Survey felt the debt should be managed by any unitary in the west or north of Surrey, 25% the government should contribute to reduce the debt, 15% the government should write off the debt and 10% that all unitaries should share the debt.

At the same time, the proposal sets out a wider plan for financial resilience across all three new unitary authorities. It includes detailed modelling of transition costs, savings from reducing duplication and opportunities for transformation. These are not presented as quick fixes, but as part of a phased and realistic approach to building long-term sustainability. The proposal also includes a clear implementation and transformation plan, with a focus on maintaining service continuity, managing risk, and embedding good governance.

Importantly, the proposal avoids assuming financial issues can be solved through structural change alone. It recognises area specific arrangements will be needed – particularly in relation to Woking’s debt – and these must be agreed with government.

The proposal does not treat the financial challenges in parts of Surrey as isolated problems. Instead, it integrates them into a wider strategy for reform and with the right support from government, it offers a strong foundation for more resilient and sustainable local government across the whole area.

The proposal for three councils prioritises the delivery of high-quality, sustainable public services and sets out a clear plan to improve local government and service delivery while avoiding unnecessary fragmentation.

By replacing the current two-tier system with three new unitary authorities, the proposal brings together services currently split between county and district councils. This will reduce duplication, streamline decision-making, and make it easier for residents to access the support they need. It also allows for better coordination between related services, such as housing and social care, or planning and infrastructure, which are currently managed by different councils.

The proposal includes a phased approach to transformation, ensuring critical services like adult social care, children’s services, SEND, and homelessness support continue safely and legally from day one. It avoids the risks of rushed disaggregation by maintaining continuity in these services initially, while allowing for future reform and local tailoring where it adds value.

Importantly, the proposal recognises the need for innovation and early intervention. It outlines opportunities to redesign services around people and places, rather than organisational boundaries. This includes plans for integrated neighbourhood teams, shared commissioning, and closer working with health, education, and voluntary sector partners.

The proposal also addresses wider public services, including public safety and emergency planning. It includes plans to maintain strong coordination across the new councils and with key partners like the police, fire services and NHS, ensuring that resilience and community safety are not compromised during or after reorganisation.

The proposal offers a practical and well-evidenced route to better value for money, more responsive services, and a stronger, more sustainable local government system for Surrey.

The proposal for three councils has been informed by local views and gives strong consideration to local identity, culture, and history.

The engagement process included over 3,000 residents from across Surrey, with 63% expressing a preference for a three-unitary model. The most important priorities identified were local decision-making and councils having a strong understanding of local issues, highlighting the importance of councils that are close to the communities they serve.

The proposal reflects this by aligning the new unitary councils with Surrey’s three distinct functional economic areas - East, North and West Surrey. These boundaries are based on real places with shared identities and economic links, rather than arbitrary lines. This approach helps preserve local identity and ensures that services are delivered in a way that reflects the unique needs of each area.

The proposal also addresses concerns about the potential loss of local knowledge and community connection. The proposal commits to more innovative and participatory forms of engagement, such as citizen panels, participatory budgeting, and co-designed services, that are embedded in the new councils from the outset.

Overall, the proposal demonstrates a thoughtful and evidence-based approach to local engagement and identity. It reflects the views expressed during consultation and includes practical steps to ensure that local concerns are addressed and that communities remain at the heart of local government.

The proposal for three unitaries strongly supports devolution and is designed to unlock its full potential for Surrey.

By creating three new unitary authorities that align with Surrey’s distinct economic areas, the proposal lays the groundwork for a new Mayoral Strategic Authority (MSA) covering the whole county. This structure will allow for a more joined-up approach to planning, transport, skills and infrastructure, all key areas where devolved powers can make a real difference.

The proposal sets out a clear timeline: the new unitary councils would be established by April 2027, with elections for a directly elected Mayor of Surrey taking place the same year. This ensures that the new MSA can begin operating immediately, with strong local leadership and a clear democratic mandate.

This approach meets the government’s criteria by:

• Supporting a coherent strategic footprint for devolution.
• Enabling strong local leadership and accountability.
• Creating the right conditions for long-term economic growth.

The proposal will enable stronger community engagement and deliver genuine opportunities for neighbourhood empowerment.

The move to three new unitary councils is designed to bring decision-making closer to the people it affects. Each council will be rooted in a distinct and recognisable part of Surrey - East, North, and West - making it easier for residents to engage with their local council and feel their voices matter. This is backed by strong public support: over 80% of residents said understanding local issues and making decisions locally were their top priorities.

The proposal avoids one-size-fits-all or top-down models that have failed elsewhere. Instead, it builds on Surrey’s existing strengths, like local partnerships, community forums and voluntary sector networks and commits to expanding these in ways that are meaningful and inclusive. For example, it includes plans for participatory budgeting, citizen panels, and co-designed services that reflect the needs and aspirations of each community.

Importantly, the proposal recognises real empowerment means more than just consultation. It means giving communities the tools, support and influence to shape decisions and take action on the issues that matter most to them. This approach is not only more democratic also leads to better outcomes, because services are designed with and for the people who use them.

By aligning council boundaries with real places and identities and by embedding community engagement into the heart of how services are delivered, the proposal meets the government’s criteria for stronger local democracy and neighbourhood empowerment. It offers a practical and forward-thinking model for how councils can work in partnership with their communities to build a more responsive, resilient and inclusive future.