Two new unitary councils will be created in Surrey in April 2027 after ministers confirmed Local Government Reorganisation (LGR) plans. The move will create a simpler and more efficient system for delivering services across the county. 

Local government minister Alison McGovern announced the decision today via a written ministerial statement. She says this once-in-a-generation reform will see stronger local councils in charge of all local services.

The two new unitary councils – East and West Surrey – will deliver all local services in their area. This includes waste collection, planning, adult social care, children’s services, business rates, parks and highways. 

Ministers say the move will drive economic growth, improve local public services and empower communities. Ultimately this will help drive up living standards.

The two new unitary councils will replace the existing two-tier system of twelve county, district and borough councils in April 2027.

By doing this, government says it will create “a strong foundation for devolution in Surrey”. A strategic authority would have responsibility for high-level issues like transport, economic development and skills.

What happens next?

Elections for the new councils will take place in May 2026. With new authorities formally taking over responsibilities from 1 April 2027.

This transition period will enable detailed work for reorganisation and devolution to take place. Services will be delivered as usual during this time. 

East Surrey will replace the current areas covered by Elmbridge, Epsom and Ewell, Mole Valley, Reigate & Banstead, and Tandridge councils.

A West Surrey unitary will take over the areas of Guildford, Runnymede, Spelthorne, Surrey Heath, Waverley, and Woking. 

Surrey County Council will work together with all councils in Surrey to implement this new model. And ensure a smooth transition.

Government will also commit to repayment in-principle of £500 million of Woking Borough Council’s debt in 2026-27. And they will continue to explore what further debt support is required at a later point. 

Surrey leader response to two new unitary councils

Tim Oliver, Leader of Surrey County Council said: 

“We welcome the government’s direction to create two new unitary councils for Surrey from April 2027 – East Surrey and West Surrey. Reorganisation and devolution are huge opportunities, and this is good news for Surrey residents and businesses. As set out in submissions earlier this year, and confirmed by government, all the evidence points to this being the best outcome for Surrey – saving money, simplifying services and strengthening local communities. 

“As expected, there will be elections to the new unitary councils in May 2026. We also welcome the intention that a Mayoral Strategic Authority will be established, with timings to be confirmed soon following discussions with the Minister. This devolution will unlock huge benefits for Surrey, with more powers held closer to communities, stronger local decision making and turbo charged economic growth for the region. 

“All councils can now come together to push forward the right structures, and put the right resources in place, to enhance our already vibrant county. We are ready and well prepared for this change. And I am absolutely clear that, throughout this process, our vital work supporting residents will continue. Services will be delivered and we will still be here for those who need us most. Our focus is on ensuring a smooth transition and we will communicate with residents along the way.” 

Surrey business response to two new unitary councils

Chris Hurren, chairman of the Surrey Business Leaders Forum, said: 

“We welcome the certainty provided by the government decision today around how local public services in Surrey will be delivered in the future. We‘re confident our local leaders, working together and with partners, will deliver the best outcome for the county’s 1.2 million residents and 110,000 businesses.

“We have long maintained that LGR in itself is a matter for our local authority leaders. But, on behalf of businesses across Surrey, I want to re-emphasise the importance of a strategic authority for Surrey delivering devolved 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 moving these powers away from Whitehall will provide clear opportunities for our people, places and economy to grow.”

Further details

To stay informed and follow the latest updates, visit Surrey County Council’s Local Government Reorganisation hub.

Have a question about how this will impact your Surrey business? Get in touch via our Contact Us form.

Gatwick Airport’s Northern Runway plans are moving closer after receiving government consent. The expansion is projected to inject an additional £1 billion into the UK economy every year, creating 14,000 jobs across the south east.

The airport, which borders the east of Surrey, is the UK’s second busiest. It claims bringing the Northern Runway into routine use is “one of the biggest growth opportunities for the UK today”.

The airport adds the £2.2 billion project is privately financed, requiring no taxpayer money and is shovel ready. Plus, it will continue to operate as the work progresses.

Heidi Alexander, the Secretary of State for Transport, granted consent for the Development Consent Order this week after a detailed review of the proposal.

Despite some clarifications from the airport announced in April, there remain concerns from communities about noise and congestion. Transport and sustainability are also key issues.

Stewart Wingate, VINCI Airports Managing Director for United Kingdom said: “After a lengthy and rigorous planning process, we welcome the Government’s approval of plans to bring our Northern Runway into routine use, ahead of the expected deadline. 

“This is another important gateway in the planning process for this £2.2 billion investment, which is fully funded by our shareholders and will unlock significant growth, tourism and trade benefits for London Gatwick and the UK and create thousands of jobs. 

“As we’ve said previously, it is essential that any planning conditions enable us to realise the full benefits of the project and do not impose unnecessary constraints that make it uneconomic to invest in.  

“We now need to carefully examine the details of the planning consent. Once we have done that, we will be able to comment further.” 

Gatwick expansion plans

Gatwick Airport’s Northern Runway plans include moving the existing northern runway 12 metres to allow London Gatwick to have a second fully functioning runway.

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

The airport says it is already a major catalyst for growth. And that its plan meets the Government’s test of making best use of existing infrastructure and maximising growth.

Gatwick’s response to the national planning process said 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. This would require increased rail services.

If the 54% target is not achieved then London Gatwick has 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 £350 million of road improvements have been completed.  This would make sure any additional road traffic flows can be accommodated and any congestion avoided.

About Gatwick Airport

With 41 million annual passengers, London Gatwick is the UK’s second largest and one of Europe’s top ten airports. It generates £5.5 billion GVA and supports over 76,000 jobs (2023 report). 

Almost 60 airlines fly from the airport to over 150 short-haul and more than 50 long-haul destinations.  It has a capacity of 55 movements an hour. This makes London Gatwick the most efficient single runway airport in the world.   

The airport sits 28 miles south of the UK capital and is extremely well-connected. More than a quarter of England’s population is less than one hour away by road or rail. 

A six-year, £2 billion sustainable growth programme includes an ambitious plan to be a net zero airport by 2030.

Heathrow Airport expansion plans are now with government. If approved, the privately-financed plans could unlock jobs and growth for Surrey businesses. But there are still concerns around infrastructure, public transport, pollution and noise.

Heathrow submitted its shovel-ready proposals last week (Friday 1 August), promising a third runway and supporting infrastructure can be ready within a decade.

An expanded Heathrow would cost close to £48 billion. Benefits include giving passengers more choice, opening up new routes and increasing capacity. Plus terminals will be more spacious and accessible with flights quicker to take off, thanks to a once-in-a-generation redesign of the airfield.

Once completed, Heathrow says its plans would grow the UK economy by 0.43% GDP – providing jobs to Surrey residents and supply chain opportunities to Surrey businesses.

But there are concerns around the impact it could have on those living nearest, especially noise, pollution and transport connections.

Feedback from the Government is required by September to take the plans forward. Further consultation will follow with a planning application expected to be submitted in 2028.

Heathrow Airport expansion plans – in detail

The blueprint submitted to Government is available on the Heathrow website. It is not a formal planning application. The Heathrow airport expansion plans include:

• A north-western runway up to 3,500 metres – a design that already has Parliamentary support
• Increased capacity to serve up to 756,000 flights and 150 million passengers
• A brand-new terminal ‘T5X’, expanding Terminal 2 and three new satellite terminals

The investment consists of three main elements:

• £21 billion for the new runway and airfield infrastructure
• £12 billion for new terminal and stand capacity – the brand new T5X
• £15 billion for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3

Heathrow’s proposals include more choice and capacity on public transport. This includes enhanced rail capacity plus walking and cycling routes, reducing local and environmental impacts.

A new road tunnel, plans for two dedicated parkways and improvements to the country’s busiest bus and coach station are also proposed.

Heathrow is also confirming its commitment to reach net zero by 2050. It says it has a deliverable plan to get there, as well as setting targets on noise reduction and air quality.

If the Government implements the necessary policy changes, Heathrow plans to consult with airlines, the local community, local authorities, businesses and others from next year.

A planning application is expected to be submitted in 2028.

Heathrow expansion – impact on Surrey

Heathrow is located to the north of Surrey, neighbouring key towns such as Staines, Egham and Sunbury. It provides employment to thousands of residents and contributes millions to the regional economy.

Heathrow says its expansion plans will offer tens of thousands of employment opportunities during design, construction and operation. It will also unlock lifelong careers for those who live closest.

Meanwhile 40% of the wider supply chain spend will go to companies in London and the South East.

But more flights and a bigger airport means more potential disruption to those living nearest. Noise, emissions and public transport are key concerns.

Heathrow says its noise footprint has reduced by 41% since 2006 and all air quality monitors around the airport are meeting limits. A third runway and redesigned airspace will give communities and passengers more certainty and reliability on flight paths.

For the airport’s nearest neighbours, a community fund is being proposed. And Heathrow says it will continue to engage on how to be a better neighbour to its local community.

Heathrow airport expansion plans – reaction

Heathrow CEO Thomas Woldbye said: 

“It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity. With a green light from Government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country. We are uniquely placed to do this for the country; it is time to clear the way for take-off.”

A spokesman for Surrey County Council said:

“We recognise the crucial role of Heathrow airport in supporting employment for Surrey residents, generating investment in the Surrey economy and in attracting and retaining major businesses to locate in the county.

“Our goal is to work constructively with the Government, the airport, relevant national agencies and other local authorities on the proposals for a third runway in order to protect and promote the interests of Surrey residents and businesses.

“Despite this, we remain strongly of the view that expansion requires the environmental and surface access issues involved to be satisfactorily addressed.”

Looking for support?

Business Surrey provides free and accessible support for all, no matter the size or stage of journey.

We recognise you may need additional help, either via email, phone or face-to-face. So you can get in touch with our expert enterprise advisors at any point.

You can also:

• access an easy-to-use support directory with more than 120 national and regional schemes.
• list of events across Surrey to support networking and shared learning
• register to receive our regular newsletter, including news on funding, events, free training and support for all Surrey businesses.

The Small Business Plan promising SMEs the tools they need to grow has been published by government. This includes better access to finance and stronger powers on late payments.

Small and medium sized firms employ 60% of the country’s workforce and generate £2.8 trillion in turnover. But ministers say, for too long, the odds have been stacked against small businesses.

Government’s Small Business Plan promises action to change that. At its heart is proposals to introduce the toughest laws on late payments in the G7. There’s also better access to finance, including via the British Business Bank.

It follows the recent publication of the long-term industrial and trade strategy that’s helping businesses plan ahead with confidence.

Scroll down to see how this could impact your Surrey business.

Late payments

Government estimates late payments cost the UK economy £11 billion per year and closes down 38 UK businesses every day.

New laws will give stronger powers to the Small Business Commissioner. It will empower them to wield fines, worth potentially millions of pounds, against the biggest firms who persistently choose to pay their suppliers late.

The Small Business Commissioner will have new powers to carry out spot checks and enforce a 30-day invoice verification period to speed up resolutions to disputes.

Upcoming legislation will also introduce maximum payment terms of 60 days, reducing to 45 days – giving firms certainty they’ll be paid on time.

Audit committees will also be legally required to scrutinise payment practices at board level. It places greater pressure on large firms to show they’re treating small suppliers fairly.

Mandatory interest charges for those who pay late will also be introduced.

These changes will also save small businesses valuable time, freeing up hours currently spent chasing overdue invoices so they can focus on growing their business instead.

A consultation on the proposed changes is running on the government website.

Access to finance

Many small firms struggle to secure the funding they need to invest, expand, or even survive. This is despite the UK’s world-leading financial services sector.

So, Government is launching a new £4 billion wave of financial support for small businesses. It includes a £1 billion boost for new businesses. Plus 69,000 Start-Up Loans and mentoring support to inspire the next generation of entrepreneurs and small business owners.

The Government is also delivering a new £3 billion boost to the British Business Bank – raising the total guarantee to £5 billion. This will help lenders offer more small business loans through the ENABLE programme – providing a government-backed guarantee, better loan terms and lower interest.

Other changes

• Slashing of red tape to boost the hospitality and arts sector through hospitality zones and licensing reforms
• High Street Rental Auctions to fill vacant high street premises
• A revamped Board of Trade to get more small firms exporting around the world
• The new Business Growth Service to ensure SMEs have access to key support
• Plans for permanently lower business rates multipliers for the hard-hit retail, hospitality and leisure sector. 

Small Business Plan – reaction

Michelle Ovens CBE, Founder, Small Business Britain, said:

“I am thrilled to see the Small Business Plan launched today, putting the nation’s smallest businesses at the heart of Government strategy where it should be. These job creators and economy builders will benefit from a huge boost to funding through the British Business Bank, a boost to skills, support for high streets and a long hoped for legislative backing for getting paid on time.

“We will not see economic growth without small business growth. So I am eager to get on and help the Government deliver on this agenda – and help small businesses regardless of their background start, grow and thrive.”

Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB), said:

“Making sure businesses are paid on time, that our high streets thrive, and creating conditions in which everyone can start and succeed in business are crucial priorities for small businesses, communities and the economy.

“Today’s plan is an encouraging commitment from the Government to take the side of small businesses in the great growth challenge ahead.”

Support for your small business in Surrey

Business Surrey provides free and accessible support for all, no matter the size or stage of journey.

We recognise you may need additional help, either via email, phone or face-to-face. So you can get in touch with our expert enterprise advisors at any point.

You can also:

• access an easy-to-use support directory with more than 120 national and regional schemes.
• list of events across Surrey to support networking and shared learning
• register to receive our regular newsletter, including news on funding, events, free training and support for all Surrey businesses.