The UK Government has officially approved the creation of two new unitary councils in Surrey, marking a significant step forward in the country’s ongoing local government reorganisation. The decision will see Surrey divided into East Surrey Council and West Surrey Council, as part of a broader effort to improve financial stability and streamline governance.
£500 Million Financial Support for Woking Borough Council
Alongside this announcement, local government minister Alison McGovern confirmed that Woking Borough Council, which declared effective bankruptcy in 2023 due to high debt levels, will receive a £500 million repayment in principle from the Government. This major financial intervention aims to help stabilize the council’s finances ahead of the upcoming structural changes.
Ms. McGovern described the allocation as a “significant and unprecedented commitment”, highlighting its importance in addressing historic capital issues within Woking Borough Council.
Proposals and Government Decision
Two competing proposals for Surrey’s local government restructure were submitted earlier this year.
- Surrey County Council, along with Elmbridge and Mole Valley District Councils, proposed forming two unitary authorities.
- The alternative plan, supported by Woking, Spelthorne, Runnymede, and Guildford Councils, pushed for a three-unitary model.
After a detailed review, Communities Secretary Steve Reed approved the two-unitary model, concluding that it better meets the required criteria—particularly in terms of financial sustainability.
“In our judgment, although both proposals met the criteria, the two-unitary model performs better against the second criterion, as it is more likely to be financially sustainable,” McGovern said. “This is crucial for Surrey, where reorganisation is essential to improve the financial health of councils facing unprecedented debt levels.”
Streamlining Local Government Across England
The decision forms part of the Government’s nationwide plan to streamline local governance, as outlined in last year’s White Paper. Councils serving populations of 500,000 or more are expected to operate more efficiently, reduce administrative overlap, and respond better to local communities.
Elections for the new Surrey councils are scheduled for May 2026, following which a strategic authority will oversee area-wide responsibilities such as transport and adult skills, ensuring key county-level functions continue seamlessly.
Government Emphasizes Case-by-Case Approach
Minister McGovern clarified that Surrey’s outcome does not establish a precedent for other counties undergoing reorganisation.
“Each proposal will be assessed individually and on its merits,” she said, adding that the Government remains committed to evaluating each local context fairly and transparently.
Local Leaders React to the Decision
Tim Oliver, leader of Surrey County Council, welcomed the decision, calling it “good news for Surrey residents and businesses.” He added, “This devolution will unlock major benefits, placing more power closer to local communities, strengthening decision-making, and driving economic growth.”
Simon Edwards, chief executive of the County Councils Network, supported the Government’s adherence to population guidelines, saying it was the “only way” to create financially stable and efficient local authorities. “This decision should serve as a benchmark for other regions,” he added.
However, Richard Wright, chairman of the District Councils’ Network, criticized the move, arguing that it might make local government less responsive to community needs. “Smaller unitary councils can be equally effective in delivering growth and services, often with lower council tax bills,” he noted, urging greater inclusion in the reorganisation process.
A Landmark in Local Government Reform
The creation of East Surrey Council and West Surrey Council represents a defining moment in the Government’s broader reorganisation agenda aimed at improving efficiency, reducing debt, and modernizing local government structures across England.
As Surrey prepares for its new governance model, both residents and local leaders are watching closely to see how this transformation shapes the county’s future in terms of economic growth, financial recovery, and community representation.
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