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08 Feb 17
19:02
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Surrey County Council
Jeremy Corbyn has accused ministers of agreeing a "sweetheart deal" to ensure a Tory-controlled council dropped plans to raise council tax by up to 15%.
In PMQs, Labour's leader read out what he said were leaked messages showing Surrey council's leader negotiating with the government to call off a referendum on the rise.
On Tuesday, Surrey County Council restricted the increase to 4.99%, so a referendum was no longer needed.
It said "no deal" had been offered.
Downing Street said all conversations between the government and Surrey had been "entirely appropriate" and there was no "sweetheart deal".
The proposed 15% rise was mooted by Surrey Council to cover what it says are shortfalls in funding to cover the rising costs of social care.
But plans for a referendum - which kicks in on proposed council tax rises of 5% and above - were dropped during a full council meeting on Tuesday. Councillors will now consider an alternative budget.
BBC assistant political editor Norman Smith said the prospect of such a sharp increase by a Conservative council had "set alarm bells ringing" in the government, which feared it would hit the "just about managing" group the prime minister has vowed to protect.
Jeremy Corbyn has accused ministers of agreeing a "sweetheart deal" to ensure a Tory-controlled council dropped plans to raise council tax by up to 15%.
In PMQs, Labour's leader read out what he said were leaked messages showing Surrey council's leader negotiating with the government to call off a referendum on the rise.
On Tuesday, Surrey County Council restricted the increase to 4.99%, so a referendum was no longer needed.
It said "no deal" had been offered.
Downing Street said all conversations between the government and Surrey had been "entirely appropriate" and there was no "sweetheart deal".
The proposed 15% rise was mooted by Surrey Council to cover what it says are shortfalls in funding to cover the rising costs of social care.
But plans for a referendum - which kicks in on proposed council tax rises of 5% and above - were dropped during a full council meeting on Tuesday. Councillors will now consider an alternative budget.
BBC assistant political editor Norman Smith said the prospect of such a sharp increase by a Conservative council had "set alarm bells ringing" in the government, which feared it would hit the "just about managing" group the prime minister has vowed to protect.
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