Your questions answered - Devolution and Local Government Reorganisation

The English Devolution White Paper, published on 16 December 2024 is the Government's statement of its plans to reform local government.

This includes a wide range of proposals on devolution but also plans for local government reorganisation, and changes to local audit.

In England, devolution is the transfer of powers and funding from national to local government. It means decisions are made closer to the local people, communities and businesses they affect.

Devolution will include the creation of new strategic or combined authorities overseen by a directly elected Mayor across a large geography. This body would oversee devolved powers on key issues such as transport and economic development.

In some areas this will see neighbouring areas join up and be led by a directly elected mayor.

Such a model currently exists in London, Greater Manchester and other places.

Local Government Reorganisation is the process by which the structure and responsibilities of local authorities are reconfigured. The government White Paper states that unitary councils can lead to better outcomes for residents, save significant money which can be invested in public services, and improve accountability with fewer politicians who are more able to focus on delivering for residents.

If Surrey were to move to a unitary model, the county and district and borough councils would all dissolve and a new unitary council or councils would deliver all the services. The government agrees that, for Surrey, reorganisation is essential to unlocking devolution options.

Devolution is the transfer of powers and funding from national to local government.

Local Government Reorganisation is a process where all county and district and borough councils in an area are reorganised into fewer, unitary councils.

Unitary authorities are a single tier of local government responsible for all local services in an area. They may cover a whole county, part of a county or a large town or city. For example, Cornwall Council, Nottingham City Council and Reading Borough Council are all unitary councils.

Large urban areas may have a unique form of unitary authorities called metropolitan councils, such as Oldham or Doncaster. London boroughs are also unitary authorities.

Two-tier authorities such as Surrey are where:

1. County councils provide services that cover the whole county such as education, waste disposal and adult social care
2. District councils (sometimes called borough or city councils) are smaller and provide local services such as refuse collection, environmental health, and leisure facilities.
3. Parish and town councils are smaller and have differing local responsibilities

The terms "Unitary Council" and "Strategic Authority" refer to different types of local government bodies in the UK and they serve distinct functions.

Unitary Councils have one tier of local government, combining all the local services that in Surrey are currently provided across District and Boroughs and the county council.

Strategic Authorities (such as a combined authority), are partnerships that bring together local authorities across a large geography. They focus on high-level services and strategic oversight across multiple local councils or regions, overseen by a Mayor.

Examples of Unitary Councils are Wiltshire Council and Buckingham Council.

Examples of Strategic Authorities are the Greater London Authority and the Greater Manchester Combined Authority.

There are two ways in which Local Government Reorganisation (LGR) can take place.

1. The first is for an area to be invited by ministers to become a unitary council. Unanimous agreement from councils in that area is not needed. The government have invited all remaining two tier local government areas to submit proposals for local government reorganisation. The government asked all areas to submit interim proposals by March 2025, with new unitary councils having elections from 2026 onwards.

2. Councils which unanimously agree on a preferred way forward for their area can also make a direct proposal to ministers. Government acknowledges there will likely be differences in views, so this approach is not expected to be used widely.

A unitary council delivering all key services is intended to simplify and streamline local government. Benefits include enhanced efficiency, service delivery and economic growth.

The consolidation of smaller councils into larger authorities is expected to reduce administrative overheads and deliver services more efficiently.

On 5 February 2025, Government confirmed that Surrey is on the accelerated programme​ for Local Government Reorganisation.

Government asked us to submit an interim proposal by 21 March 2025 which we did and the final plan by 9 May 2025, which has also been submitted. ​ Government will make a decision on the best option for Surrey by Autumn this year.

To help us meet the ambitious timelines, government has postponed the Surrey County Council elections for one year to May 2026. ​

It is expected that elections to new 'shadow' unitary council(s) will take place in May 2026, followed by the official 'vesting day' in April 2027, where the unitary council(s) will officially take hold, and existing councils will dissolve. ​

Once LGR has taken place it is then expected that devolution will follow: either through establishing a Mayoral Strategic Authority (MSA), enabling further devolution across Surrey, or through joining a neighbouring MSA.

We are still waiting for full guidance on what transition arrangements will look like.

It is anticipated there would be a shadow unitary authority(ies) established 12 months in advance of any handover.

This would ensure as smooth a transition as possible for our residents.

Yes. The county council and the 11 district and borough councils are to be abolished and replaced with new unitary council(s).

It is expected that elections to new 'shadow' unitary council(s) will take place in May 2026, followed by the official 'vesting day' in April 2027, where the unitary council(s) will officially take hold, and existing councils will dissolve. ​

The engagement of residents, staff, the voluntary sector, local businesses, community groups and councils, and public sector providers such health, police and fire has been at the forefront of our work in shaping the future of local government in Surrey. An extensive programme of insight, communications and engagement has been carried out to inform the development of the final plan, and to understand what matters most to the people of Surrey. This insight will also help future unitary councils set their direction and values. See the final plan for more information.

No decisions have been made yet on the number of unitaries.

There are potentially a number of ways to go about local government reorganisation and government.

Surrey County Council's preferred recommendation, backed by supporting evidence, is that Surrey's current 12 councils are replaced by two new unitary councils, one for each half of the county.

Two unitary councils in Surrey would deliver:

• More efficient council services and better partnership working
• Millions of pounds in reduced costs year on year
• The right economies of scale to deliver at less cost
• The right structure and governance to engage communities at a local level
• Clarity for residents on who is responsible for all services
• The opportunity for devolved powers from government to a Mayoral Strategic Authority, in line with the government's ultimate plan for UK devolution

Financial analysis also shows that the more councils created through reorganisation, the smaller the saving to the public purse.

Lots of work has gone into considering options, and we've carefully analysed data and drawn on our existing knowledge of our county, our communities and our residents - and this proposal would create simpler, more effective, sustainable, and cheaper local government for Surrey.
Details on how the county could be split are shown in our final plan

The government set out their ambition for devolution in their manifesto before they came to power. While it didn't go into detail of exactly how they would do this until the white paper in December, their intentions were clear. We are now working to secure the best possible deal for you as Surrey residents and businesses.

We had to signal our interest to government quickly to apply to be part of the first wave, in order to get the full benefits of devolution as soon as possible. We will be engaging with partners and residents over the coming months about what that could look like for Surrey.

No, all councils in Surrey will be abolished.

It is expected that elections to new 'shadow' unitary council(s) will take place in May 2026, followed by the official 'vesting day' in April 2027, where the unitary council(s) will officially take hold, and existing councils will dissolve.

Surrey County Council (SCC) is currently the registered scheme administrator and as part of the proposal made to central government by SCC, the scheme administrator in the new structure will either see one of the new authorities assume this role or, the pension fund may operate independently as a separate authority.

Surrey County Council is the largest of 400 employers within the Surrey Local Government Pension Scheme (LGPS) but the administration and funding of the scheme operates independently from Surrey County Council and, with the pension you are currently in receipt of being paid from Surrey Pension Fund, not Surrey County Council, payments to its members will continue as normal.

The recent response from the Ministry of Housing, Communities and Local Government (MHCLG) on May 29th also looked to provide assurance to members of the LGPS in section 1.5 by stating the following:

'The government notes that many of the scheme members who responded to the consultation were concerned about the security of their pensions. For the avoidance of doubt and to reassure members, LGPS members’ benefits and pensions are guaranteed in law and will not be affected by these policy measures.'

We haven’t spent any money on consultants for this project. We have the capacity, skills and resources to progress this work without incurring further costs for the council. It may be the case that other authorities across Surrey are taking a different approach for their proposals.

The 39% figure largely reflects the current financial situation in Woking, which has a significant level of debt. Both unitary proposals acknowledged that resolving Woking’s debt is essential before the new structure is implemented.

The government has already indicated that it recognises the issue of so-called “stranded debt” in Woking, and discussions are ongoing to find a resolution. Once a solution is agreed with government, the financial outlook for the West will improve, and the 39% figure will no longer apply in the same way.

The goal is for both the East and West unitary councils to start on an equal footing, with the ability to deliver high-quality services from day one. Addressing Woking’s debt is a key part of making that possible.

The transition costs will be funded by the 12 existing councils in Surrey. At present, there is no formal agreement between them on how the costs will be divided, but collectively they will be responsible for covering the implementation expenses.

In previous local government reorganisations elsewhere in the country, similar costs have typically been funded from the reserves held by the councils involved. It is expected that a similar approach will be considered in Surrey.

The proposed East-West split was based on detailed analysis carried out as part of the business case for local government reorganisation. The aim was to create an equitable starting point for the new councils across key service areas such as social care, public highways, and other local services.

The analysis looked closely at the relationship between the cost of delivering services and the funding sources available to each area. It showed that an East-West division would provide the most balanced distribution of both service demand and financial resources. This approach is intended to ensure that both new councils are well-positioned to deliver high-quality services sustainably into the future.

Government’s intention for devolution and LGR is to create more Strategic Authorities with a Mayor in areas that don’t currently have them – like Surrey. We’re not proposing a single unitary option because government has said that strategic authorities must cover at least two unitary councils and, as Surrey does not have any obvious neighbours to partner with under a mayor, this is not an option we can propose.

This has been a key topic of discussion. In Surrey, about one-third of the county is currently covered by town or parish councils, while the remaining two-thirds are not. This reflects the national picture.

Under the proposed new structure, town and parish councils will continue to play an important role, especially through their involvement in neighbourhood area committees. These committees will bring together representatives from unitary councils, town and parish councils, the health system, police, and voluntary sector. Their purpose is to support early intervention and preventative services at a local level.

The government has stated that town and parish councils are not a substitute for neighbourhood area committees, but they will be key partners within them. The County Council is already working with the Surrey Association of Local Councils and will continue discussions about the potential for "double devolution" — where town and parish councils may take on more responsibility for local services or assets, depending on their capacity and interest.

Decisions about the future role of town and parish councils will ultimately be made by the new unitary authorities. It is also possible that more town or parish councils could be created in areas that do not currently have them, but that will be for the new councils to decide.

he government is consulting on two proposals for Surrey.

One is from Surrey County Council, Elmbridge Borough Council and Mole Valley District Council, which is supported by a wide range of local partners including health, police and fire, business and community leaders.

The other proposal is from the other district and borough councils in Surrey.  Both proposals can be found on our Plans page.

To adhere to the ambitious timelines, government postponed the Surrey County Council elections for one year to May 2026. ​

This was to allow the detailed work of reorganisation and devolution to take place.

The resource, time and public money that would have been spent on elections for a soon-to-be-abolished council is being directed to working on the best possible outcome for Surrey's reorganisation.

No, current councillors will not step down immediately after the elections in May. The elections will appoint members to the new unitary councils, whether there are two or three. These newly elected members will serve in a shadow authority capacity until vesting day on 31 March 2027.

Until then, all 12 existing local authorities in Surrey will continue to operate and deliver services as usual, both at the county level and within each district and borough. On 31 March 2027, the 12 sovereign councils will be dissolved, and the shadow authorities will formally take over. From that point, the elected members of the new unitary councils will assume full responsibilities for decision-making and governance.

As part of local government reorganisation, all existing council assets and liabilities will transfer to the new unitary authorities. Where property is involved, ownership will transfer to the unitary authority that covers the geographical area where the asset is located.

Once the government confirms the preferred structure for Surrey’s local government, expected in the autumn, a Structural Change Order will be laid before Parliament. This will establish joint committees to oversee the transition and provide the governance needed to implement the reorganisation.

These joint committees, made up of councillors, will be responsible for preparing detailed implementation plans ahead of the shadow authority elections in May 2026. These plans will include how assets and liabilities from the current 12 councils will be transferred to the new unitary authorities.

Currently, Surrey County Council funds and manages county-wide services like the Surrey Heritage Centre. As part of the local government reorganisation, services that cannot be split geographically will need to be considered separately during the transition process.

Joint committees, which will be established once the government confirms the new structure, will be responsible for planning how these services are managed going forward. This includes decisions about where the property will sit, how the services will operate, and how they will be funded.

In other parts of the country where similar reorganisations have taken place, local arrangements have often been set up to manage county-wide cultural services such as archives, archaeology, and heritage. It is likely that a similar joint arrangement will be considered in Surrey. The new unitary councils will need to agree on how these services are funded as part of their first budget for the 2027 to 2028 financial year.

Currently, each of the 12 councils in Surrey remains a sovereign body and has the legal authority to make decisions, including the sale of assets. However, once the government confirms the new structure and a Structural Change Order is laid before Parliament, additional controls will come into effect.

These controls include what are known as Section 24 powers. These powers require councils to seek approval from the new shadow authorities before making certain decisions, such as selling property, entering into contracts, or committing to long-term projects. This is to ensure that no decisions are made that could undermine or complicate the transition to the new unitary councils.

While councils may still have valid reasons for asset sales in the short term, once Section 24 powers are in place, any such decisions will need to be reviewed and approved by the shadow authorities to ensure they align with the future structure and priorities.

Staff are the most important resource across all 12 local authorities, and we fully recognise that this period of change may cause concern or uncertainty. We are committed to working closely with staff throughout the transition to ensure they are well informed and supported.

The vast majority of staff are expected to transfer into the new unitary authorities with minimal disruption. We will continue to engage with staff across all councils to keep them updated as plans develop, and to ensure a smooth transition into the new organisations. Most staff will continue delivering services to residents much as they do now, just under the new council structures.

A mayor is a directly elected leader of a geographical region. Many areas of England already have mayors, including London, Greater Manchester and West Yorkshire. There are also directly elected mayors covering single unitary councils.

Directly elected mayors with expanded powers are expected to provide accountability and clearer leadership. Those empowered local leaders will be best positioned to drive economic development in their regions.

Strategic Authorities are partnerships that bring together local authorities across a large geography. They focus on high-level services and strategic oversight across multiple local councils or regions, overseen by a Mayor.

The Government believes that within the context of strategic authorities, mayors should have a unique role which allows them to focus fully on devolved responsibilities. Council leaders are expected to continue to focus on leading their place and delivering vital services.

Mayors have strategic powers over a wide area. This means enabling important public services, such as police, fire and health partners, as well as councils to join up and work more collaboratively. Mayors' powers change in different parts of the country and we don't yet know what exactly a mayor overseeing Surrey will be responsible for.

The Mayor will be democratically elected and will therefore have their own mandate. However, in our proposed governance structure - where there are two unitary authorities and a Mayor - the Leaders of the two councils would be able to outvote the Mayor on most matters. While there may be certain reserved or strategic matters where the Mayor’s vote carries more weight, the day-to-day operational delivery of services will remain the responsibility of the unitary authorities. The Mayor’s role is intended to be strategic rather than operational. Ultimately, the unitary authorities will have an equal say in shaping the overall strategy, and the specific decision-making arrangements will be subject to further negotiation.

There is already a forum called the Strategic Leaders of the South East, which exists to foster collaboration across the region. Surrey also has a strong relationship with Hampshire, particularly due to the shared economy along our borders. Until recently, we were part of a joint Local Enterprise Partnership with Hampshire.

At the outset of this process, all 12 council leaders in Surrey collectively reached out to neighbouring authorities - including Hampshire, East and West Sussex, and Kent - to explore the possibility of forming a broader combined authority. However, those councils responded to say they were not interested in joining at this time. Many of them are preparing for their own mayoral elections in May and are comfortable proceeding independently.

That said, regional collaboration remains important - especially in areas like health, where Surrey Heartlands is already working more closely with Sussex. While a wider combined authority isn’t on the table currently, the door remains open for future cooperation.

Yes, under the current proposal, the future Mayor would take on the responsibilities of the Police and Crime Commissioner. The Mayor would also assume oversight of the Fire and Rescue Service.

In Surrey, the Fire and Rescue Service is currently funded and managed by the County Council. Both of these blue light services would be transferred to the new strategic mayoral authority as part of the reorganisation.