Contribution
My Lords, this order was laid before the House on 14 January 2026. If approved in the House and in the other place, it will implement a proposal submitted by Elmbridge Borough Council, Mole Valley District Council and Surrey County Council for two unitary councils, east Surrey council and west Surrey council, covering the entirety of the county of Surrey.
This proposal, alongside a three unitary option, was taken to consultation after councils in Surrey responded to the invitation to submit proposals issued on 5 February. On 28 October 2025, Minister McGovern announced the Secretary of State’s decision to implement, subject to parliamentary approval, the two unitaries proposal. In reaching this decision, we considered the proposals carefully against the criteria in the invitation letter, alongside the responses to the consultation, all representations and other relevant information. In our judgment, although both proposals met the criteria, the proposal for two unitaries better met the criteria in the case of Surrey. In particular, we believe that it performed better against the second criterion, as it is more likely to be financially sustainable.
Putting Surrey’s local authorities on a more sustainable footing is vital to safeguarding the services that its residents rely on, as well as investing in their futures. To deliver new unitary councils, the order requires May 2026 elections for the new councils, which will assume their full powers on 1 April 2027. These elections will replace the scheduled county council and some district council elections. Subsequent elections to the unitary councils will be in 2031 and every four years thereafter. Establishing these new unitary authorities will help with our vision: stronger councils in charge of all local services and controlling local economic powers to improve public services and help grow local economies.
Before I outline the content of the draft order, I would like to bring to the attention of noble Lords two related issues: the level of unsupported debt in Woking and devolution for Surrey. On Woking’s debt, the Government recognise that Woking Borough Council holds significant and exceptional unsupported debt that cannot be managed locally in its entirety. We have committed to unprecedented debt repayment support of £500 million for Woking council, reflecting historic capital practices at the council and the value-for-money case for acting to protect local and national taxpayers. This is a first tranche of support and we will continue to explore what further debt support is required at a later point, including following greater certainty on the rationalisation of assets in Woking. Any support will need to consider what further action can be taken locally to reduce debt, and value for money for the national and local taxpayer. We are also committed to providing the new unitary authority with interim financial support, for example, capitalisation support, until this process is complete.
On devolution for Surrey, on 12 February we set out our intention to deliver a new wave of foundation strategic authorities across England. In Surrey, the Government are working with partners, which will include the new unitary authorities, to establish a foundation strategic authority. This will ensure that relevant functions held at county level, such as transport and adult skills, can continue to be delivered on that geographic footprint, where possible. The establishment of a strategic authority will be subject to the relevant statutory tests and local consent. The Government will also ensure that fire and rescue functions continue to be governed on the same geography.
I turn to the content of the order. It provides that, on 1 April 2027, the county of Surrey and the districts of Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate and Banstead, Runnymede, Spelthorne, Surrey Heath, Tandridge, Waverley and Woking are abolished. The councils of those districts and the county will be wound up and dissolved.
In their place, their functions will be transferred to the two new unitary authorities—east Surrey council and west Surrey council. This order places a duty on the existing councils to co-operate with each other and the shadow authorities. It also places a duty on existing councils to create joint committees for east Surrey and west Surrey, which will be dissolved after the first meeting of their respective shadow authorities. I take this opportunity to thank all the Surrey councils and everyone involved for their continued hard work and collaboration on local government reorganisation in Surrey.
In conclusion, through this order we are seeking to replace the existing local government structures in Surrey with two new unitary councils that will be financially sustainable and able to deliver high-quality services to residents. I beg to move.