The Decision
28 October 2025 — the government announced Surrey would become 2 councils, not 3.
What Was Decided
Jim McMahon, the Minister of State for Local Government and English Devolution, confirmed that Surrey would be reorganised into two unitary authorities: East Surrey and West Surrey. All 12 existing councils will be abolished on 1 April 2027.
McMahon — Labour MP for Oldham West, Chadderton and Royton and a former council leader himself — had driven the reorganisation process from the outset, writing to all Surrey councils in February 2025 inviting proposals and launching the statutory consultation in June. Before entering Parliament in 2015, he served as Leader of Oldham Council from 2011 to 2016 and was named Council Leader of the Year in 2014. He was awarded an OBE for services to the community in Oldham.
West Surrey
Heavy debtGuildford, Runnymede, Spelthorne, Surrey Heath, Waverley, Woking
Population: 657,309
East Surrey
Minimal debtElmbridge, Epsom and Ewell, Mole Valley, Reigate and Banstead, Tandridge
Population: 545,798
Why 2 Instead of 3?
The government acknowledged that both proposals met its criteria, but argued the 2-unitary model better met the requirement for financial sustainability. Their reasoning:
Higher projected savings
£23m annual savings (2 unitaries) vs £16m (3 unitaries) — a difference of £7m per year.
Larger revenue base
Larger authorities would have greater capacity to absorb financial shocks, the government argued.
Service alignment
NHS and police bodies supported 2 unitaries for better alignment with their own service delivery boundaries.
Population guidance
The 2-unitary model was closer to the government's 500,000+ population guidance for new authorities.
Projected Savings Comparison
Projected annual savings. The £7m difference was cited as a key factor in the decision. Source: Government consultation response.
The Alternative: 3 Unitaries
The 3-unitary proposal, supported by 9 of 11 district councils and 51% of consultation respondents, would have created North Surrey, West Surrey, and East Surrey — with more evenly distributed populations and, critically, a different distribution of debt.
Under the 3-unitary model, Spelthorne and Runnymede (the second and third most indebted councils) would have been in North Surrey rather than lumped together with Woking in West Surrey. This would have spread the financial risk more evenly.
West Surrey
Guildford, Waverley, Woking
Population: 374,706
North Surrey
Runnymede, Spelthorne, Surrey Heath, Elmbridge
Population: 420,337
East Surrey
Epsom and Ewell, Mole Valley, Reigate and Banstead, Tandridge
Population: 408,064
Criticism
The decision drew sharp criticism from multiple quarters. Council leaders across Surrey expressed grave concerns about the concentration of debt in West Surrey and questioned why the consultation result was effectively ignored.
During the House of Lords debate on the Surrey Structural Changes Order in March 2026, peers raised concerns that the new West Surrey authority could be “bankrupt from day one” and questioned the adequacy of the £500m government commitment towards Woking's £2.1bn debt.
Residents expressed frustration that four of the six councils forming West Surrey — Woking, Spelthorne, Runnymede, and Surrey Heath — all carry significant financial problems, while the financially healthier councils (Guildford and Waverley) are being dragged into a debt-laden authority.