JEREMY Corbyn accused Theresa May today of overseeing a secret deal with Surrey County Council after it dropped plans for a referendum on a 15 per cent tax hike to pay for social care.

He claimed to have had leaked texts sent which proved a backroom deal took place with the Department for Communities and Local Government.

The Labour leader secured a rare win in PMQs today when he told MPs that he had learned of discussions including the leader of the Council and  that he claimed showed a deal had taken place. Downing Street denied claims of an arrangement – but Labour has written to the PM asking her to reveal all that she knew.

Yesterday Surrey Council Council announced they would drop plans to hold a referendum on hiking taxes to pay for soaring social care costs. Instead they agreed to raise it by 4.99% – which doesn't require them to go to the polls first.

It ditched its threat to raise bills by as much as £124 a year saying they had been given pledges over funding for the elderly and disabled.

Mr Corbyn stormed: "How much did the Government offer Surrey to kill this off? Is the same sweetheart deal on offer to all councils?"

The Labour leader said it was no coincidence that both the Chancellor and Health Secretary represent Surrey constituencies.

Mrs May feebly replied: "The decision as to whether or not to hold a referendum in Surrey is entirely a matter for Surrey County Council."

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But the Labour leader read out texts from Surrey Council chief David Hodge and Nick, who was thought to be an adviser to ministers in the DCLG.

It is now understood that the conversation was actually between Mr Hodge and Nick Forbes, a Labour Councillor in Newcastle.

The local Tory boss said was keen "to kill this off" but appeared to be holding out for a unique “memorandum of understanding” to "call off the R."

Mr Corbyn said: "These texts read… ‘I’m advised that DCLG officials have been working on a solution and you will be contacting me to agree a Memorandum of Understanding.’ Will the Government now publish this memorandum of understanding and, while they’re about it, will all councils be offered the same deal?”

"How much did the Government offer Surrey to kill this?" he asked repeatedly.

"Will the same deal be offered to all councils going through a social care crisis?"

Labour's John Ashworth has written to the Prime Minister to ask for clarity regarding the funding arrangements, and for all correspondence to be released.

And the Lib Dems said any "memorandum of understanding" should also be published.

John Ashworth’s letter to the PM in full

Prime Minister,

I am writing to you in light of today’s revelations about text messages sent by the leader of Surrey County Council which suggest that the Government has agreed to funding arrangements for social care that allow the cancellation of a proposed referendum on a council tax increase in this Council.

Given your failure to provide clarity on the issue when asked in the Chamber today, and bearing in mind the great importance of this issue given the crisis faced by social care in our country, I am hereby requesting for the Secretary of State for Communities and Local Government to make an urgent statement to the House tomorrow.

This news has caused considerable embarrassment to the Government, in particular the Secretary of State for Health and the Chancellor of the Exchequer. To rule out any suggestions of wrongdoing, the Government now needs to confirm that no special deal has been offered or granted to Surrey County Council.

I believe that the British public deserve full transparency on the issue. In the public interest, I therefore ask you to publish immediately and without delay:

a) The memorandum of understanding referenced in the text messages sent by the leader of Surrey County Council;

b) All text message correspondence between Surrey County Council and Government officials in the Cabinet Office, the Department for Communities and Local Government, the Department of Health, and the Treasury regarding social care funding and/or the proposed referendum;

c) All written or electronic correspondence between Surrey County Council and Government officials in the Cabinet Office, the Department for Communities and Local Government, the Department of Health, and the Treasury regarding social care funding and/or the proposed referendum;

d) Details and minutes of all meetings held between Surrey County Council and Government officials in the Cabinet Office, the Department for Communities and Local Government, the Department of Health, and the Treasury regarding social care funding and/or the proposed referendum.

Additionally, as the Prime Minister knows the Ministerial Code requires holders of public office to “act and take decisions in an open and transparent manner” and that “information should not be withheld from the public unless there are clear and lawful reasons for doing so”. I am therefore asking you to confirm that any misconduct by Ministers related to this matter will be investigated and treated as a breach of the Ministerial Code.

Given the questions these news raise about proper conduct and transparency of Government policy-making, I am sending a copy of this letter to the Director General of the Propriety and Ethics Team. I will also be publishing this letter.

Yours sincerely,

Jonathan Ashworth MP

David Hodge said this afternoon that there was no deal made.

"Surrey’s decision not to proceed with a 15 per cent council tax increase was ours alone and there has been no deal between Surrey County Council and the Government.

"However, I am confident that the Government now understands the real pressures in adult social care and the need for a lasting solution."

ITV reported that Mr Hodge had intended for the texts to go to Communities Secretary Sajid Javid's special adviser, Nick King. Sources said they had instead been sent by mistake to the Labour Councillor – who had passed them on to other figures in the party.

Why were Surrey Council Council planning a referendum to hike taxes?

TORY councillors in one of Britain’s richest counties ditched plans to hike council tax by as much as 15 per cent to pay for soaring social care costs after assurances from ministers.

Surrey County Council dropped its threat to raise bills by as much as £124 a year saying they had been given pledges over funding for the elderly and disabled.

Ministers have allowed all Councils to raise their taxes by up to 5 per cent to pay for more social care. But anything over 5 per cent would require a referendum first. They called off the plans yesterday after getting assurance from ministers. It would have been a huge embarrassment for Surrey MPs Chancellor Philip Hammond and Health Secretary Jeremy Hunt if the Council had gone through with plans to hold a referendum.

Mrs May did not deny that a deal had taken place.

She said: "The Labour party fails to understand that this is not just a question of dealing with the money".

The PM added that Labour were peddling "alternative facts."

"What they really need is an alternative leader," she told him.

Leaked texts in full

David Hodge (leader of Surrey Council): Nick I understand you would like to chat this afternoon. Grateful if we could speak asap this afternoon, about the way forward. David Hodge

Nick: Hi David – I haven't specifically asked to speak to you, though it's always a pleasure! Is this something the LGA is trying to set up between us? If so I'm unaware of the issue. Thanks, Nick

David Hodge: Nick I am advised that DCLG officials and my Director of Finance/CE have been working on a solution and that you would me (sic) contacting me to agree an MOU

Nick: Do you know what it's about? Sorry I'm being clueless here

David Hodge: I have also been advised that Chief Sex at Treasury is looking at the proposals now, are you in the picture? I am being chased to appear on Sunday TV

David Hodge: Nick I have received clarification from my CE who confirms Matthew Styles and Sheila Little have just spoken and the numbers you indicated are the numbers that I understand are acceptable for me to accept and call off the R……. If it possible for that info to be send to Sheila Little or myself, I can then revert back soonest, Really want to kill this off

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