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Your support makes all the difference.A Tory-run council was promised extra cash from central government over the next few years in order to head off an embarrassing referendum on raising council tax, it has emerged.
Labour has called for an investigation into potential ministerial misconduct over Surrey County Council, which had planned to hold a referendum on a 15 per cent council tax rise because it said its social care system was in danger of collapse without extra money.
Eyebrows were raised earlier this week when the planned poll was abruptly cancelled with little explanation.
One of the wealthiest areas of the country, the Tory stronghold is home to the seats of Jeremy Hunt the Health Secretary and Philip Hammond the Chancellor. Citing leaked text messages, Jeremy Corbyn on Wednesday accused the Government of striking a “sweetheart deal” with the Tory local authority at the expense of poorer areas.
Downing Street and the council both denied a special deal had been struck – but after hours of not commenting Whitehall’s Department for Communities and Local Government later confirmed that Surrey would in fact be set to get extra money in the 2018/19 financial year.
Under the plan, Surrey would take part in a Department for Communities and Local Government “pilot” scheme that would let it keep revenues from business rates that would ordinarily go to central government.
Other councils not involved in the pilot will have to wait a further two years to get the extra cash, which Surrey would only otherwise have received in April 2020.
Labour’s shadow health secretary Jonathan Ashworth has written to Theresa May to call for the publication of all correspondence on the matter and for a probe into potential misconduct by ministers.
“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,” he wrote.
“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.”
At PMQs Theresa May said only that whether or not to hold a referendum was a matter for Surrey County Council.
A DCLG spokesperson said: “Surrey County Council informed the Government that they wished to become a pilot area.
“The secretary of state for communities and local government told them that this was not possible for 2017/18, but said that, subject to due process and meeting the necessary criteria, they could participate in the 2018/19 pilot.
“All other councils will be free to apply to participate in these pilots, and the Government invites them to do so.
“DCLG has already held discussions about the 2018/19 pilots with several councils and it will be publishing more information shortly.”
David Hodge, leader of Surrey County Council said: “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.”
Under a rule brought in by the Government, councils cannot raise council tax by more than 5 per cent without holding a costly local referendum.
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