Council denies ‘sweetheart deal’ on care costs after Corbyn reveals leaked text messages

A Tory-led authority has denied there was a secret deal struck with the Government over funding for social care after scrapping plans for a 15% hike.

Jeremy Corbyn challenged Theresa May at Prime Minister’s Questions with a series of leaked text messages from the council’s leader, claiming ministers had offered a “sweetheart deal” to Surrey County Council.

But Surrey’s leader David Hodge insisted there was no deal with ministers over the decision to abandon the 15% hike and replace it with a 4.99% rise.

He said: “Surrey’s decision not to proceed with a 15% 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.”

The original plan for a 15% rise to help cover the cost of social care would have required a referendum, but it was abandoned on Tuesday.

The proposal was politically embarrassing for the Government because senior Tories including Chancellor Philip Hammond and Health Secretary Jeremy Hunt have constituencies in Surrey.

At Prime Minister’s Questions, Mr Corbyn produced a series of text messages from Mr Hodge which are understood to have been intended for Nick King, a special adviser to Communities and Local Government Secretary Sajid Javid.

Downing Street sources denied that the messages were intended for Mr King.

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’.”

He challenged ministers to “publish this memorandum of understanding and, while they’re about it, will all councils be offered the same deal?”

A second text message read “the numbers you indicated are the numbers I understand are acceptable for me to accept and call off the R” – an apparent reference to the referendum.

Mr Corbyn added: “He goes on to say in his text to Nick ‘If it is possible that info to be sent to myself I can then revert back soonest, really want to kill this off’.

“So how much did the Government offer Surrey to kill this off and is the same sweetheart deal on offer to every council facing the social care crisis created by (Mrs May’s) Government?”

Mrs May stressed that all councils with responsibility for social care had the ability to raise council tax by an extra 3%.

She said of Mr Corbyn: “He comes to the despatch box making all sorts of claims. Yet again what we get from Labour is alternative facts; what they really need is an alternative leader.”

Announcing his U-turn on Tuesday, Mr Hodge indicated that he had been in talks with ministers which had given him hope that a solution could be found.

He said: “The Government has listened and we believe the Government now understands.

“We are therefore willing to take a risk that a solution will soon be found for the issues that all councils face.

“However, if there isn’t any progress in finding a solution to the adult social care crisis, our situation will become untenable and intolerable.”

The proposed 15% rise would have added almost £200 to an average Band D bill, but the 4.99% hike – which includes the 3% rise specifically allowed to fund social care – will increase bills by around £63.

Tory MP Sir Nicholas Soames described Mr Hodge as a “bozo” after the text message gaffe.

“Absolute corker by Leader of Surrey CC,” he wrote on Twitter. “What a bozo.”

Conservative MP Crispin Blunt, who represents Reigate in Surrey, suggested Mr Hodge’s messages related to discussions about government funding formulas.

He told BBC Radio 4’s The World at One programme: “What they can’t have got is any formal deal.

“What I believe will have happened is that they have been taken through the department’s plans for the future both in terms of the plan for business rate retention as well as the fair funding formula review and that will have given the leader of the council sufficient comfort then to be able to recommend to his colleagues that they call off the referendum.”

Shadow health secretary Jon Ashworth called for all exchanges between Surrey and the government to be published.

“I’m afraid Crispin’s explanation of nothing to see here, move along, is entirely implausible,” he told the programme.

“These are not the texts of somebody who has been briefed by civil servants on future finance.”

Leaked text messages sent between Surrey County Council leader and ‘Nick’

Here are the leaked text messages Jeremy Corbyn used to accuse the Government of offering a deal on social care funding to Surrey County Council. Labour said the messages were understood to be intended for Nick King, a special adviser to Communities and Local Government Secretary Sajid Javid – a claim denied by No 10.

:: Text from Surrey County Council leader David Hodge

Nick, I understand you would like to chat this afternoon, grateful if we could speak asap this afternoon, about the way forward. David Hodge

:: Reply

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

:: Text from Mr Hodge

Nick,

I am advised that DCLG officials and my Director of Finance/CE have been working on a solution and that you would be contacting me to agree an MOU

:: Reply

Do you know what it’s about? Sorry I’m being clueless here

:: Text from Mr Hodge

I also have been advised that Chief Sec at Treasury is looking at the proposals now, are you in the picture?

I am being chased to appear on Sunday TV which are avoiding where possible to avoid any confusion over the work being done in the last days to resolve SCC budge position,

David

:: Text from Mr 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 is possible for that infor to be sent to Sheila Little or myself, I can then revert back soonest,

Really want to kill this off,

David Hodge

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