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Surrey council received boost in budget after 'sweetheart deal' claims Surrey council received boost in budget after 'sweetheart deal' claims
(about 1 hour later)
An analysis of new money announced in the budget shows that Surrey council, whose leader said he had secured a “gentleman’s agreement” on finance with the government, received twice as large a proportional funding increase as any other council in the country. Philip Hammond’s budget has handed the largest boost in social care funding to Surrey council, according to calculations made after government ministers were accused of reaching a “sweetheart deal” with the Tory-led authority.
The Labour party calculations, taken from government figures on how the £2bn extra will be divided up over three years among more than 150 English councils, show that while in 2017/18 Surrey will get 0.75% of the year’s total, by 2019/20 this jumps to 1.66%. Analysis by Labour shows that out of the £2bn of new money for social care in England announced in Wednesday’s budget, Surrey will see the biggest increase in the share of funding by the 2019/20 financial year.
The 0.91 percentage point rise is more than twice as rapid as that for the county with the second-highest increase, Hertfordshire, which sees its share of the total pot increase by 0.43 of a percentage point over the three-year period. The analysis says that Surrey will get 1.66% of the money, rising from 0.75% in 2017/18, an increase of 0.91 percentage points in the three-year period – more than double the increase of the second council, Hertfordshire.
The analysis comes a day after correspondence between Surrey and the Department for Communities and Local Government (DCLG), released under freedom of information laws, showed a senior council official talking about ministers “willing to get us some extra funding from 2018”. Theresa May has repeatedly denied Surrey will receive any form of funding not available to other local authorities, after the council last month called off a planned referendum on increasing council tax by 15% to pay for what it said was a crisis in social care funding.
Theresa May has repeatedly denied Surrey received any money not available to other local authorities, after the council last month called off a planned referendum on increasing council tax by 15% to pay for what it said was a crisis in social care funding. But soon after the postponement, leaked text messages about a supposed “memorandum of understanding” between the council and government prompted Jeremy Corbyn to accuse May of buying off Surrey with a special deal, which she denied.
Soon after the decision, leaked text messages about a supposed “memorandum of understanding” between the council and government prompted Jeremy Corbyn to accuse May of buying off Surrey with a special deal, which she denied.
The Labour leader reiterated the accusation this week after the release of an audio recording in which the council leader, David Hodge, told fellow Surrey Conservatives about a “gentleman’s agreement” with ministers.The Labour leader reiterated the accusation this week after the release of an audio recording in which the council leader, David Hodge, told fellow Surrey Conservatives about a “gentleman’s agreement” with ministers.
The politician revealed in the recording that there had been a “series of conversations” with the communities secretary, Sajid Javid, in a car outside Downing Street. That was followed by a second meeting with the chancellor, Philip Hammond, he said. Hodge revealed in the recording that there had been a “series of conversations” with the communities secretary, Sajid Javid, in a car outside Downing Street. That was followed by a second meeting with the chancellor, Philip Hammond, he said.
Later that day, documents released by Surrey under freedom of information rules showed the chancellor, Philip Hammond, was among a series of Surrey Conservative MPs who lobbied Javid over the issue. Later that day, documents released by Surrey under freedom of information rules showed Hammond was among a series of Surrey Conservative MPs who lobbied Javid over the issue.
A new tranche of correspondence released by Javid’s department shows that on the morning of 7 February, the day Hodge announced he was backing down from the referendum, frantic negotiations were still going on. A new set of correspondence released by Javid’s department shows that on the morning of 7 February, the day Hodge announced he was backing down from the referendum, frantic negotiations were still going on.
At 8.23am Surrey’s director of finance, Sheila Little, messaged Matthew Style, head of local government finance for the DCLG, one document showed. At 8.23am Surrey’s director of finance, Sheila Little, messaged Matthew Style, head of local government finance at the Department for Communities and Local Government (DCLG), one document showed.
“The leader [Hodge] has just shown me a note from a Surrey MP about a conversation late last night with SJ,” she wrote. SJ refers to Javid.“The leader [Hodge] has just shown me a note from a Surrey MP about a conversation late last night with SJ,” she wrote. SJ refers to Javid.
“Seems to indicate government are willing to get us some extra funding from 2018. V interested in whether this is sincere. As it stands isn’t enough to call the ref [referendum] off? But could it be?”“Seems to indicate government are willing to get us some extra funding from 2018. V interested in whether this is sincere. As it stands isn’t enough to call the ref [referendum] off? But could it be?”
May’s official spokesman was adamant when asked whether the exchange indicated the prime minister might have misled the Commons over the issue. “No,” he said. “There is absolutely no change in our position.”May’s official spokesman was adamant when asked whether the exchange indicated the prime minister might have misled the Commons over the issue. “No,” he said. “There is absolutely no change in our position.”
A DCLG note released with the freedom of information documents made the same point.A DCLG note released with the freedom of information documents made the same point.
“Whilst the final settlement has yet to be approved, the government is not proposing extra funding to Surrey county council that is not otherwise provided or offered to other councils generally,” it read.“Whilst the final settlement has yet to be approved, the government is not proposing extra funding to Surrey county council that is not otherwise provided or offered to other councils generally,” it read.
“There is no ‘memorandum of understanding’ between government and Surrey county council.”“There is no ‘memorandum of understanding’ between government and Surrey county council.”
However, Labour’s Teresa Pearce, the shadow communities secretary, said the analysis of the extra social care money showed ministers “are busy playing political games with funding allocations in a desperate attempt to hide their sweetheart deal”.However, Labour’s Teresa Pearce, the shadow communities secretary, said the analysis of the extra social care money showed ministers “are busy playing political games with funding allocations in a desperate attempt to hide their sweetheart deal”.
She said: “This week’s budget won’t fix the issues facing social care. What we need from the Tories is a long-term sustainable plan, rather than cosy deals for Tory councils.She said: “This week’s budget won’t fix the issues facing social care. What we need from the Tories is a long-term sustainable plan, rather than cosy deals for Tory councils.
“Theresa May has failed to come clean about the terms of the deal offered to Surrey, failed to apologise for her government’s misleading suggestion that there had been no such deal and would not give the assurance that other local councils will get the same treatment.”“Theresa May has failed to come clean about the terms of the deal offered to Surrey, failed to apologise for her government’s misleading suggestion that there had been no such deal and would not give the assurance that other local councils will get the same treatment.”
The DCLG has been contacted for comment.The DCLG has been contacted for comment.