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Leaked tape of Surrey's council tax government 'deal' Leaked tape reveals Surrey's council tax government 'deal'
(about 2 hours later)
The BBC has obtained a leaked recording of a council leader saying he struck a deal with the government before scrapping a 15% council tax hike.The BBC has obtained a leaked recording of a council leader saying he struck a deal with the government before scrapping a 15% council tax hike.
The Prime Minister has repeatedly denied Surrey has been given what Labour calls "a sweetheart deal". The prime minister has repeatedly denied Surrey County Council was given what Labour calls "a sweetheart deal".
But on the recording, Councillor David Hodge said he had written government assurances and recordings of talks.But on the recording, Councillor David Hodge said he had written government assurances and recordings of talks.
Mr Hodge said "every leader... will always have these conversations to try and get a better deal".Mr Hodge said "every leader... will always have these conversations to try and get a better deal".
The government has been approached for a comment. He announced he was abandoning plans for the 15% hike during a meeting of council members in February.
Mr Hodge announced he was abandoning plans for the 15% hike during a meeting of council members in February.
A rise of 4.99% was approved instead, avoiding a referendum on the issue.A rise of 4.99% was approved instead, avoiding a referendum on the issue.
Deputy leader Peter Martin said at the time, approving a 4.99% increase was the "right thing to do" and "better than having a divisive 15%".Deputy leader Peter Martin said at the time, approving a 4.99% increase was the "right thing to do" and "better than having a divisive 15%".
'Don't get annoyed''Don't get annoyed'
In the audio obtained by the BBC, Mr Hodge claimed senior councillors and officials spoke on the phone to Conservative MP Sajid Javid "in his car outside number 10" on the morning they took the vote. In the audio obtained by the BBC, Mr Hodge claimed senior councillors and officials spoke on the phone to Communities Secretary Sajid Javid "in his car outside number 10" on the morning they took the vote.
Mr Hodge said he was "looking for help on how we could stop a referendum" and told councillors of "a gentleman's agreement we have agreed this morning". Mr Hodge said he was "looking for help on how we could stop a referendum" and told councillors of "a gentleman's agreement".
When asked about the recording, Mr Hodge said he was still hoping the Chancellor would announce extra money for Surrey in the budget. When asked about the recording, Mr Hodge said he was still hoping the Chancellor Philip Hammond would announce extra money for Surrey in the budget.
He said: "Every leader, if they're any good at the job, will always have these conversations to try and get a better deal." He said: "Every leader, if they're any good at the job, will always have these conversations."
Asked if he was angry that the secret recording appeared to have been leaked by one of his own councillors, he said: "I'm a politician, I don't get annoyed." Asked if he was angry that the recording appeared to have been leaked by one of his own councillors, he said: "I'm a politician, I don't get annoyed."
The council announced its original plan of a 15% rise in January, blaming government cuts of £170m and an increased demand for social care. 'No special deal'
Gareth Thomas, Shadow Minister for Communities and Local Government, said: "Theresa May and her ministers have been playing political games, conducting backroom sweetheart deals for their friends, whilst councils across the country struggle to cobble together the money to adequately fund social care."
He urged the prime minister to "come clean about the terms of the deal... and ensure other local councils get the same treatment".
A government spokesperson said: "As we have repeatedly made clear, there was no special deal... they will not receive any extra funding that would not otherwise be provided or offered to other councils.
"To imply the opposite is simply untrue."
The Department for Communities and Local Government spokesperson said Surrey had wanted to become a pilot area for the 100% business rates retention scheme and was told it could apply for the 2018/19 pilot.
It added: "DCLG discusses local government funding with councils across the country of all types and all political parties. This... has always been the process."
Surrey County Council announced its original plan of a 15% rise in January, blaming government cuts of £170m and an increased demand for social care.
The proposed increase would have added nearly £200 to a Band D bill and sparked a referendum which could have cost the authority up to £300,000.The proposed increase would have added nearly £200 to a Band D bill and sparked a referendum which could have cost the authority up to £300,000.