Executive summary

This document outlines our proposal for the future of local government in Surrey.

The current two-tier system has been in place for fifty years. We now have a once-in-a-generation opportunity to change things - to get the organisation of local government right for Surrey, creating a structure that will stand the test of time.

If we make the right choice, we can build a system that empowers communities, improves economic growth and sets a new standard for excellence in public service delivery for all our residents and businesses.

We believe our proposal offers a compelling vision to shape Surrey’s future – where the structure of local government is built around Surrey’s distinct and recognised functional human and economic geographies. By aligning local government with well-defined and understood places, we can create a system that is more responsive, effective and attuned to the diverse needs of the people, communities and businesses that call Surrey home.

Put simply, we believe that local authorities with administrative boundaries that reflect functional and locally recognised areas are better equipped to meet the needs of these areas. They will also improve the potential for partnership working across the system and with community partners. 

Crucially, our proposal will also lay the essential foundations to unlock devolution and create a meaningful economic footprint upon which a Mayoral Strategic Authority for Surrey can be established, in line with the government’s ambitions for growth. With the new unitary authorities able to adopt a coherent and strategic approach to planning for growth, the new Surrey Strategic Authority, led by a newly elected Mayor, will be in the strongest possible position to use their devolved powers to deliver on the national mission of growth, ensuring a strategic regional approach to skills, transport and planning.

In addition to these significant economic and democratic benefits, our analysis clearly demonstrates that our proposal significantly improves financial efficiency. Our work has found that our proposal for three new unitary authorities is financially viable, resulting in significant savings compared to the current two-tier system of local government. Despite the potential for significant annual savings through reorganisation and transformation, we note that much of this will be needed to deal with budget pressures forecast to come down the line.

Stranded debt remains an unresolved issue, and we would welcome further discussions with government for dealing with this in Surrey to best enable successful set-up and a sustainable future of unitary local government.  This is particularly important given the expected implications of the Fair Funding Review and concurrent need to manage the ever-increasing demand pressures faced by high-risk services such as social care and housing and homelessness support. To achieve the benefits of reorganisation, the stranded debt of Woking Borough Council must be written off as part of the government’s considerations within the forthcoming Spending Review.

In short, we propose the establishment of three new unitary authorities to replace the current two-tier system of local government.

Our proposed new unitary authorities are:

We have also considered the viability of a two unitary authority model.

To be clear, the decision between two or three unitary authorities is far more than one of mere administrative convenience or numbers on a spreadsheet – it represents a choice between a system of local government that actively fosters and encourages community empowerment, local decision making and strong place leadership, and one that while certainly aspiring to it, will lack the institutional and strategic clarity to drive growth and embrace truly local decision making.

Through our proposed three-unitary model, we have demonstrated our commitment to ensuring that the new unitary authorities in Surrey serve as exemplars of decentralising institutional power and empowering communities. The structure of the new councils will enable us to adopt, embed, and accelerate innovative participative methods, enhancing local decision-making and community engagement at the neighbourhood level. In our proposal we outline examples of inspiring case studies of work already carried out in Surrey, as well as those from elsewhere that can drive meaningful community empowerment and economic growth.

We would appreciate the chance to discuss further with government fundamentally rethink delivery, and to explore opportunities for innovative reform as part of this process.

A two unitary authority model, lacking alignment with Surrey’s functional economic areas, places and identities will embed economic incoherence and conflicting growth incentives, and cannot meaningfully empower local people due to its democratic distance and disconnection of residents from the levers of power. We have considered whether systems like community boards would help, and concluded that, as demonstrated by the experience of Wiltshire, that these will not resolve the fundamental issues.

Our view is the product of significant analysis and local engagement, as well as a review of the experience of local government reorganisation elsewhere in England. We have worked collaboratively with local authorities across Surrey and have carried out engagement with residents and key stakeholders.

Over 3,000 residents from right across Surrey responded to our early engagement survey. They expressed a clear preference for three unitary authorities (63%) compared to a two-unitary configuration (17%). They also told us that the most important priorities for them from local government reorganisation are overwhelmingly local, demonstrating the importance of maintaining a close connection to decision making and for new unitary councils that recognise and reflect place-based priorities.

Similarly, stakeholders and partners across the county recognised the significant opportunity that local government reorganisation presents to reduce duplication, streamline processes and enhance collaboration across the public, voluntary and community sectors. That said, they were also concerned that local knowledge and community connections may be lost as larger unitary authorities are formed, resulting in decision-makers being distanced from the specific needs and priorities of local communities and leading to less-informed and less-effective decisions.

Local government reorganisation is complex and not without risk, both in the initial implementation and later transformation periods to realise the full benefits. In recognition of this complexity, our proposal concludes with a detailed implementation and transformation plan. We have prioritised the ongoing delivery of critical business as usual services while consolidating systems, assets and contracts to maximise benefits, minimise risk and support transformation. Our approach will ensure ongoing efficiency and effective service delivery while enabling a smooth transition.

This proposal is a summary of the work carried out to date. We would welcome further discussions with ministers and civil servants. As we all recognise, this is a once-in-a-generation chance to reshape Surrey's future for the better and establish a successful model for local government reorganisation and devolution.