The government’s recent decision to move Surrey to a two-unitary model marks one of the most consequential shifts in local governance in recent years. For political and public sector stakeholders, this is not simply a structural change, it’s a redefinition of power, accountability, and influence, and it will set the precedent as other authorities look to follow in their footsteps.  

The shape of reform 

From April 2027, Surrey will move away from its two-tier system, where responsibilities are split between the County Council and 11 district and borough councils, and instead form two new unitary authorities: East Surrey and West Surrey. This was the preferred model that SCC wrote to the government about in August, after a period of wider consultation. 

• East Surrey: Elmbridge, Epsom and Ewell, Mole Valley, Reigate and Banstead, Tandridge
• West Surrey: Guildford, Runnymede, Spelthorne, Surrey Heath, Waverley, Woking 

Elections for the new shadow authorities will take place in May 2026, with the new councils fully operational from 1 April 2027. 

This change represents a significant consolidation of local power, reducing the number of elected members, decision-making bodies, and administrative boundaries, and with it, a fundamental shift in how political representation, local leadership, and strategic decision-making will operate. 

The politics of simplification 

Government has framed this reform as a “once-in-a-generation” opportunity: a move towards more efficient, financially sustainable councils able to “lead and empower their communities.” 

For Surrey, the rationale is clear: simplification and financial stability. But politically, this change will reshape local dynamics in several important ways: 

• Fewer elected members, greater concentration of influence. With two unitary authorities replacing 12 councils, the political stakes in local elections will rise sharply. 
• New leadership opportunities. The creation of two large authorities opens the field for new local leaders to emerge, with potential countywide, and even regional, influence. 
• A shift in narrative. The focus will move from borough and district identities to broader “East” and “West Surrey” place identities, potentially changing how communities, media, and local stakeholders frame their priorities. 

This consolidation also aligns with national government’s direction of travel on devolution, a signal that Whitehall sees Surrey as a future strategic authority in waiting. 

Devolution and strategic ambition 

Alongside the reorganisation, government has committed to exploring the creation of a strategic authority for Surrey – subject to local and ministerial approval. 

If realised, this would give Surrey greater control over infrastructure, transport, housing and skills, similar to Combined Authorities elsewhere in the country. For local leaders, it represents a pathway to more influence. For Whitehall, it offers a more coherent, accountable framework for regional investment.  

The message from government is clear: structural reform now, strategic devolution later.  

Financial context: reset and renewal 

The commitment of £500 million in debt support for Woking Borough Council in 2026–27 provides both a lifeline and a political signal. It underlines Westminster’s recognition that local government reform cannot succeed without financial stability, and that economic resets will be essential to restoring confidence in the system. 

Winners, losers and what comes next 

For the industry, the implications of Surrey’s reorganisation are multi-layered: 

Party dynamics: Surrey has long been a Conservative stronghold, but local contests have become increasingly competitive. The formation of two large unitaries may reset the political map, creating new battlegrounds and potentially new majorities. 

Local identity: The success of the reform will depend on how well the new councils manage the balance between scale and connection. Neighbourhood Area Committees are intended to preserve local voice, but much will depend on their powers and visibility. 

Stakeholder influence: For those working with local government, developers, investors, or community organisations, the next 18 months are an opportunity to shape relationships with emerging leaders and influence the early narrative of the new authorities. 

Slowing down: The transition period may create uncertainty around structures, decision-making, and timescales, causing a slowing in planning applications, and ongoing discussions. Secondly Local Plans may be scrapped and there will be likely uncertainty over their future.  

Looking ahead 

Surrey’s reorganisation is more than just a change in structure; it represents the next phase in the evolution of English local government, towards fewer, larger, and more strategic councils with the potential for devolved power. 

For those engaging across Surrey, the next two years will be a crucial time to build relationships, track developments, and plan for a new operating landscape that could offer greater clarity, influence, and opportunity.