Local government reorganisation in Surrey is moving a step forward as leaders of all 12 Surrey councils agree on the key points of an interim proposal for the county.
Under the plans – which need to be signed off by ministers – Surrey Council Council along with the county’s 11 district and borough councils could be dissolved by April 2027. They would be replaced by a series of new unitary councils.
Ministers say streamlining local government could lead to greater efficiencies, improved service delivery, and economic growth for businesses in the area.
Government adds that Local Government Reorganisation (LGR) in Surrey will then unlock further devolution in the county. This could see greater responsibilities transferred out of Whitehall to local leaders to drive economic growth.
Local government reorganisation in Surrey
In February, government asked Surrey to move forward quickly with plans for local government reorganisation and devolution.
All Surrey Council Leaders have worked together over recent weeks, agreeing key areas of collaboration and principles for reorganisation and devolution in the county.
Surrey County Councilโs Cabinet are meeting next week (March 18) to agree and submit its interim proposals ahead of the governmentโs March 21 deadline.
The proposal sets out how the county council will work jointly with district and borough councils through LGR and devolution. It also highlights opportunities for residents and businesses across Surrey.
District and borough councils in Surrey are also discussing options for reorganisation and will publish their recommendations in due course.
Government will give direction on whether any of these options should be developed further. A full business case will then be submitted on 9 May.โฏ A final decision is expected from ministers in the Autumn.
LGR – what council leaders are saying
Tim Oliver, Leader of Surrey County Council said: โIโm pleased that Surreyโs Leaders have come together to agree the principles of a local government reorganisation proposal โ which makes Surrey the first area in the country to agree a collective plan with all councils.
“I am clear that two unitary councils would bring the most benefits for Surreyโs residents. It would create a simpler model of local government that is more efficient, offers better value for money and improved outcomes for all.
“We are well prepared for change in Surrey and our proposal would set the foundations for better public service alignment and unlock further devolution, meaning we can elect a mayor which will bring more power, flexibility and funding.
“Throughout the development of this proposal we’ve engaged with partners across Surrey to ensure weโre putting the best option forward to government. Itโs important to consider how all council services, as well as other bodies like the police, fire service, health services operate, so any new system makes sense for residents.”
Hannah Dalton, Chair of Surrey Leaders Group said: “The leaders of Surreyโs councils have been meeting weekly to discuss how local government will be structured here in Surrey.
“Today, district and borough councils will publish a report outlining potential options on what form local government reorganisation may take, which will include scenarios for two and three unitary councils. The vast majority of the 11 districts and boroughs are supporting three unitaries.
“Next week, Extraordinary Council Meetings will take place across the county, at which councillors are invited to note the initial submission.
“We remain committed to working together to agree a proposal that achieves the best possible outcomes for our residents.”
How will LGR and devolution impact Surrey businesses?
The creation of new unitary councils across Surrey will affect businesses across the county.
From a practical point of view, who you pay business rates to will change. Other local services like commercial waste, planning, licensing, environmental health and trading standards could also move to a new authority.
Devolution could have an even greater impact. Evidence from areas like Greater Manchester and West Midlands shows that handing greater powers to regional leaders can drive growth. It can also strengthen local economies.
Surrey is already benefiting from some devolved responsibilities. This includes business support delivered via Business Surrey’s Growth Hub service and Surrey Careers Hub.
Additional devolution could see transport, skills, employment support and strategic planning move under an elected regional mayor.
This will mean greater control and local accountability over the development of Surrey’s economy.
What happens next?
Government has asked Surrey County Council to submit an interim plan by next week (March 21). A final proposal is due by May 9. Ministers will then decide on the best option for Surrey by Autumn this year.
To help meet the ambitious timelines, government has postponed County Council elections for one year to May 2026. โ
Elections to new ‘shadow’ unitary councils are expected to take place in May 2026. They could officially go live in April 2027 when existing councils will dissolve. โ
Devolution is set to follow once LGR is complete. This could see a Mayoral Strategic Authority (MSA) created for the county, enabling further devolution across Surrey. Or Surrey could join a neighbouring MSA.
The draft LGR business plan will be available on Surrey County Council’s Devolution and Local Government Reorganisation page when published.
Visit the FAQs page on the County Council website for further information.
