As part of the ongoing Local Government Reorganisation (LGR) and Devolution process, Surrey County Council has now published its final plan for Shaping Surrey’s Future.

The county council’s plan advocates the creation of two unitary authorities in Surrey – East Surrey and West Surrey – as the most cost-effective, efficient and simple way of providing key local services. 

The new authorities would have responsibility for all local government services in their area, including refuse collection, highways, parks and open spaces, libraries, social care, education and planning. They would replace the current two-tier system of one county and 11 district / borough councils.

The creation of new unitary authorities would also unlock further devolved responsibilities for Surrey. These would sit with a directly elected mayor representing the whole of Surrey, providing strategic oversight for economic development, skills, transport and housing.

Other areas, such as Greater Manchester and the West Midlands, already operate successfully this way. It sees the strategic authority working directly with employers to drive growth, improve employment opportunities for residents and bring investment into their regions.

Timeline for Shaping Surrey’s Future

If approved by its cabinet next week, Surrey County Council will submit its Shaping Surrey’s Future proposal to government before 9 May. The full proposal is on the Council website with additional information in the appendices.

District and borough councils will be putting alternative proposals forward by the same deadline.

Ministers will make a final decision in the early Autumn.

LGR – view from a business leader

Chris Hurren, chair of Surrey Business Leaders’ Forum, wrote an individual letter of support for the proposal, saying:

“While we recognise that LGR in itself is a matter for our local authority leaders to discuss directly with [government], on behalf of businesses across Surrey I want to reemphasise the importance of delivering strategic economic functions on a single county footprint.

“Our belief – supported by examples of devolution elsewhere, such as Greater Manchester and the West Midlands – is that business growth is dependent upon opportunities to maximise and leverage economies of scale, supporting cross-county collaboration between high-growth clusters and innovation assets.”

He added: “Whichever path is taken through the Local Government Reorganisation and devolution in Surrey, future success will require collaborative working with strong and independent unitary authorities operating on functional economic areas with a fair and reasonable split of innovation assets and strategic towns.

“We trust government and our local elected representatives to agree on the best way forward for the businesses, residents and communities of Surrey, ensuring that these authorities are well-placed to provide crucial, efficient and effective public services in the short and long term.”

Gatwick expansion plans are due to be decided by government ministers later this year. Airport bosses are announcing they are prepared to make several changes to proposals relating to noise and public transport.

London Gatwick says bringing the Northern Runway into routine use is “one of the biggest growth opportunities for the UK today”.

The £2.2 billion project is privately financed and could serve up to 80 million passengers a year. And those at the airport claim it will drive growth. They claim it will inject an additional £1 billion into the UK economy every year, creating 14,000 jobs.

The plans include moving the runway (currently used as a standby) 12 metres. This would allow the UK’s second busiest airport to have a second fully functioning runway.

Plans for bringing the northern runway into use were first consulted on in 2021.

Transport Secretary Heidi Alexander announced in February she was “minded to grant” the proposal, providing key considerations were met.

Interested parties are currently able to provide feedback on additional conditions recommended by the Planning Inspectorate.

A final decision is due by October 2025. Gatwick say work could start this year and be complete by 2030.

Gatwick’s response

London Gatwick responded to the Secretary of State’s minded to approve letter last week. It incorporated feedback on key conditions related to noise and public transport

In its response Gatwick stated it will accept stricter limits on aircraft noise. It has also put forward an improved noise insulation scheme for local residents.   

Gatwick has also accepted a requirement of 54% of passengers using public transport prior to bringing the Northern Runway into operation.

The response reiterated the need for third parties, including the Department for Transport, to support delivery. This would include, for example, reinstating the full Gatwick Express train service. 

If the 54% target is not achieved then London Gatwick has also proposed an alternative cars-on-the-road limit. This will be met before first use of the Northern Runway to address concerns about possible road congestion.  

If neither are met, then use of the Northern Runway would be delayed until £350m of road improvements have been completed.  This would make sure any additional road traffic flows can be accommodated and any congestion avoided.   

London Gatwick response also included measures to strengthen sustainable design and reduce emissions. 

Read the full response on the Gatwick Airport website.

A list of comments from all interested parties can be found on the Planning Inspectorate website.

US tariffs of 10% have recently been imposed on most UK goods imported into the United States. To support businesses in Surrey and the rest of the country, government is introducing some support measures.

Businesses in Surrey have a long track-record of trading with the world. And with the United States being our largest and closest trading partner, it could have an impact on how you do your business.

UK government has a range of US tariffs support on offer, including:

• Export Academy webinar on 28 April
  • Open to relevant businesses covering themes such as how rules of origin affect tariffs.
• Increased government-backed finance
  • Additional funding has been made available via UK Export Finance and the British Business Bank.
• Enhanced UK Global Tariff tool
  • Allows businesses to look up commodity codes, duty and VAT rates.
•  US Market Guide
  • General information on exporting from the UK to the US.
• Reduced pricing on everyday items and summer essentials
  • Government has suspended tariffs on a range of imported goods into the UK.

US tariffs currently in operation

The additional 10% tariff is on top of existing US duties, fees and taxes on imports from the UK. It’s been live since 5 April.

These additional tariffs do not apply to US imports of:

• steel, aluminium articles and automobiles, which are subject to separate additional 25% tariffs. Tariffs of 25% on automobile parts are due to be implemented no later than 3 May.
• copper, pharmaceuticals, semiconductors and lumber
• energy, energy products and other minerals not available in the US

The tariffs situation is fast moving. So, it’s worth discussing the latest situation direct with the UK export support service before making any key business decisions.

UK trade with the US

The UK exports more to the US than to any other single country.

A recent House of Commons Library research paper states that in 2024, UK exports to the US were worth more than £59 billion. This totals 16% of all UK goods exports. The next largest market is Germany which accounted for £32 billion of goods exports (9% of the total).

The top five UK goods exports to the US over the year to September 2024 were:

• cars (£8.3 billion)
• medicinal and pharmaceutical products (£7.2 billion)
• mechanical power generators, intermediate (£5.2 billion)
• scientific instruments, capital (£2.4 billion)
• aircraft (£2.2 billion).

While UK exports of goods to the US are large, exports of services are much larger. In 2023, UK exports of services to the US were £119 billion, almost twice as large as goods exports.

The top five services exports to the US in 2023 were:

• other business services, including legal services, accounting and architecture (£51.8 billion)
• financial services (£25.8 billion)
• insurance and pensions (£10.5 billion)
• telecoms, computer and information services (£9.6 billion)
• travel (£7.3 billion)

While tariffs are not imposed on services, some services exports may be linked to exports of goods.

Extra US tariffs support

Even with the extra charges, there’s lots of opportunity for Surrey businesses to trade globally.

With the right preparation, resources and support, your business can thrive on the world stage.

At Business Surrey, we’re here to guide you at every stage of your export journey. This includes extra US tariffs support.

Visit our Export and International Trade page for a list of helpful resources and organisations which can help you on your way.

Or if you would like more bespoke support, get in touch with out team of experts via our business support form.

The North Downs Line Partnership, which aims to improve east-west train connectivity in Surrey, is receiving support from key organisations.

The North Downs Line is a key orbital east-west link for the South-East. It connects Reading, Guildford, Dorking, Gatwick Airport and the towns and villages in between.

As part of broader efforts to support regional economic growth and transport decarbonisation, a new partnership group is now meeting.

Great Western Railway (GWR), Network Rail, London Gatwick and Surrey County Council attended the inaugural meeting of the group. Its aim is to improve local services, grow the line and unlock further benefits for customers.

Partners want to develop the growth corridor while working closely together to deliver better services for residents and customers.

A key change could be the introduction of fast-charge battery trains on the line. This is something that GWR bosses shared with partners at the inaugural meeting.

Ongoing improvements

The North Downs Line Partnership is already unlocking benefits for passengers. It is building on early success of collaboration, including increased connectivity and a better timetable.

The December 2023 timetable change saw the introduction of two trains per hour between Reading and London Gatwick. This led to nearly 100,000 new passenger journeys year-on-year, with customers taking advantage of more frequent services to better suit their plans. Further plans to improve the timetable are in development.

Members of the partnership recently visited GWR’s fast charge battery test train at West Ealing to see the innovative technology.

Partners agree battery electric powered trains offer the best solution to replace the diesel trains currently in service on the line. It will provide better outcomes for passengers and support decarbonisation.

Next steps will be to encourage more partners to get involved to improve this vital train link. It is also looking to champion future investment in the line to promote rail as a sustainable way to travel.

This links in with the recently-launched Surrey’s Economic Growth Strategy 2025 to 2035, which identifies transport and connectivity as one of five key drivers of change.

North Downs Line Partnership – what they say

Cllr Matt Furniss, Surrey County Council’s cabinet member for Transport, Highways and Economic Growth, said:

“We’re pleased to see this new Partnership launched to focus improvements on the North Downs Line, working with a range of organisations to deliver on this. As the first local authority to sign up, we want to encourage more partners to come forward and share knowledge, expertise and ideas to improve the service.”

Jonathan Pollard, Chief Commercial Officer, London Gatwick said:

“As we continue to grow as an airport, it is vital that we continue to invest in boosting sustainable transport options for our passengers and local communities.

“The Great Western Railway service to Reading is already a vital service. Our partnership provides the framework for an even more ambitious and collaborative approach to developing air to rail services at London Gatwick. We are delighted to continue this journey with the GWR team.”

Mark Hopwood, Managing Director of Great Western Railway said:

“The North Downs Line remains a key route on our network, connecting communities across four counties with London Gatwick. We’re proud to serve it. We want to see the timetable strengthened and deliver these improvements with local stakeholders to best accommodate the diverse range of customer needs along the route.”

Mark Goodall, Wessex Route Director for Network Rail, said:

“We are investing in the North Downs Line. Earlier this year, we replaced the wheel timbers on the bridge over the River Wey, south of Guildford.

“We are committed to finding ways to renew and improve the line for years to come to better serve those communities. Later this year, we will be completing the resignalling project on the line between Guildford and Reigate. Further details will be announced in due course.”

Local government reorganisation in Surrey is moving a step forward as leaders of all 12 Surrey councils agree on the key points of an interim proposal for the county.

Under the plans – which need to be signed off by ministers – Surrey Council Council along with the county’s 11 district and borough councils could be dissolved by April 2027. They would be replaced by a series of new unitary councils.

Ministers say streamlining local government could lead to greater efficiencies, improved service delivery, and economic growth for businesses in the area.

Government adds that Local Government Reorganisation (LGR) in Surrey will then unlock further devolution in the county. This could see greater responsibilities transferred out of Whitehall to local leaders to drive economic growth.

Local government reorganisation in Surrey

In February, government asked Surrey to move forward quickly with plans for local government reorganisation and devolution.

All Surrey Council Leaders have worked together over recent weeks, agreeing key areas of collaboration and principles for reorganisation and devolution in the county.

Surrey County Council’s Cabinet are meeting next week (March 18) to agree and submit its interim proposals ahead of the government’s March 21 deadline.

The proposal sets out how the county council will work jointly with district and borough councils through LGR and devolution. It also highlights opportunities for residents and businesses across Surrey.

District and borough councils in Surrey are also discussing options for reorganisation and will publish their recommendations in due course.

Government will give direction on whether any of these options should be developed further. A full business case will then be submitted on 9 May.  A final decision is expected from ministers in the Autumn.

LGR – what council leaders are saying

Tim Oliver, Leader of Surrey County Council said: “I’m pleased that Surrey’s Leaders have come together to agree the principles of a local government reorganisation proposal – which makes Surrey the first area in the country to agree a collective plan with all councils.

“I am clear that two unitary councils would bring the most benefits for Surrey’s residents. It would create a simpler model of local government that is more efficient, offers better value for money and improved outcomes for all.

“We are well prepared for change in Surrey and our proposal would set the foundations for better public service alignment and unlock further devolution, meaning we can elect a mayor which will bring more power, flexibility and funding. 

“Throughout the development of this proposal we’ve engaged with partners across Surrey to ensure we’re putting the best option forward to government. It’s important to consider how all council services, as well as other bodies like the police, fire service, health services operate, so any new system makes sense for residents.”

Hannah Dalton, Chair of Surrey Leaders Group said: “The leaders of Surrey’s councils have been meeting weekly to discuss how local government will be structured here in Surrey.

“Today, district and borough councils will publish a report outlining potential options on what form local government reorganisation may take, which will include scenarios for two and three unitary councils. The vast majority of the 11 districts and boroughs are supporting three unitaries.

“Next week, Extraordinary Council Meetings will take place across the county, at which councillors are invited to note the initial submission.

“We remain committed to working together to agree a proposal that achieves the best possible outcomes for our residents.”

How will LGR and devolution impact Surrey businesses?

The creation of new unitary councils across Surrey will affect businesses across the county.

From a practical point of view, who you pay business rates to will change. Other local services like commercial waste, planning, licensing, environmental health and trading standards could also move to a new authority.

Devolution could have an even greater impact. Evidence from areas like Greater Manchester and West Midlands shows that handing greater powers to regional leaders can drive growth. It can also strengthen local economies.

Surrey is already benefiting from some devolved responsibilities. This includes business support delivered via Business Surrey’s Growth Hub service and Surrey Careers Hub.

Additional devolution could see transport, skills, employment support and strategic planning move under an elected regional mayor.

This will mean greater control and local accountability over the development of Surrey’s economy.

What happens next?

Government has asked Surrey County Council to submit an interim plan by next week (March 21). A final proposal is due by May 9. Ministers will then decide on the best option for Surrey by Autumn this year.

To help meet the ambitious timelines, government has postponed County Council elections for one year to May 2026. ​

Elections to new ‘shadow’ unitary councils are expected to take place in May 2026. They could officially go live in April 2027 when existing councils will dissolve. ​

Devolution is set to follow once LGR is complete. This could see a Mayoral Strategic Authority (MSA) created for the county, enabling further devolution across Surrey. Or Surrey could join a neighbouring MSA.

The draft LGR business plan will be available on Surrey County Council’s Devolution and Local Government Reorganisation page when published.

Visit the FAQs page on the County Council website for further information.