At an extraordinary meeting, Surrey County Council voted to note a report on devolution and local government reorganisation (LGR), paving the way for the cabinet to decide whether to submit a final plan to the government. The final plan recommends a two unitary council model divided into east and west geographies. This model aims to unlock further devolution, streamline operations, enhance service delivery and unlock financial efficiencies.

Local Government Reorganisation and Devolution

The main item under discussion was the final plan for LGR in Surrey, following the government's English Devolution White Paper published in December 2024. ¹ The plan addresses the reorganisation of Surrey's local government structure and seeks to unlock further devolution of powers and funding from central government.

The Proposed Plan: The final plan recommends the creation of two unitary councils, divided geographically into East and West Surrey. This model is favoured over a three unitary approach due to its potential for financial sustainability and efficient service delivery. Councillor Tim Oliver OBE, Leader of the Council, stated that the two unitary model is:

...bold, forward thinking and evidence led and a plan that seeks to modernise local government and create a more sustainable and resilient future for Surrey.

Rationale: The plan argues that a two unitary structure would:

• Streamline operations and enhance service delivery.
• Unlock financial efficiencies.
• Enable greater local control over transport, infrastructure, housing, planning, skills, economic growth and climate change.
• Align service delivery with key partners, including the police, fire service, and health system.
• Establish community boards to ensure local engagement and responsiveness.

Financial Considerations: The report acknowledges significant financial challenges, including increasing service demand, potential funding reductions, and high levels of debt held by some authorities, particularly Woking Borough Council. A key request to the government is to write off the existing debt, to avoid the need for immediate Exceptional Financial Support for at least one of the new unitaries.

Community Engagement: The plan proposes a community engagement model with community boards, aiming to deepen collaboration between the new councils, partners, and residents.

Debate Highlights:

• Catherine Powell, Residents' Association and Independent Group Leader, raised concerns about the consistency of the papers and the financial implications for the western unitary authority, particularly regarding council tax bands and debt.
• David Lewis, Cabinet Member for Finance and Resources, refuted Councillor Powell's claims, stating that her analysis was based on flawed assumptions and analyses. He clarified that the number of council tax bands is set by the UK government and that the council tax base difference marginally favours the West.
• Robert Evans OBE, Labour & Labour Co-operative Group Leader, expressed his opposition to the two unitary model, arguing that it would result in oversized and geographically challenged authorities that do not align with government principles for devolution.
• George Potter, a Councillor, criticised the report as being filled with dodgy figures and dubious and flawed assumptions.
• Fiona Davidson, a Councillor, argued that Surrey Children's Services needs to be broken up, and that the preferred options puts the councils with the largest debt and the most need from children's services in the same unitary.
• Sinead Mooney, Cabinet Member for Adult Social Care, noted that she had been contacted by a number of Spelthorne residents and organisations expressing concern about the proposal to place the borough in the West unitary.

Decision: At the end of the debate, the council voted to note the report, with 36 members voting for, 20 against, and 2 abstaining. This clears the way for the Cabinet to make a decision on whether to submit the final LGR plan to the government.

Other Matters Discussed

• Councillor Chris Townsend apologised for using inappropriate language at a previous budget meeting.
• The council welcomed Peter Harp as the newly elected Councillor for Nork and Tattenhams Division.