The Labour leader scored a rare hit at Prime Minister’s Questions as he grilled Theresa May over abandoned plans by Tory-run Surrey County Council to hike council tax by 15 per cent.
Revealing leaked texts between a Government official and the leader of Surrey County Council, Mr Corbyn demanded to know details of an alleged deal.
Mrs May accused Mr Corbyn of using “alternative facts”, while a member of Labour’s shadow cabinet later called for resignations over the row.
Surrey County Council’s Conservative leader David Hodge had proposed the rise in order to mainly pay for social care.
Surrey residents would have been asked to authorise the tax hike at a referendum on May 4.
Mr Hodge has since scrapped plans for a county-wide vote and instead recommended a council tax rise next year of just under five per cent.
The local authority leader denied accusations of a deal with central Government, while Downing Street strongly rejected suggestions Surrey had been offered more cash in connection with the abandoned referendum.
The prospect of a referendum being held by a Conservative-run council to boost funding would have proved highly embarrassing for Mrs May, who has come under pressure from Labour over social care spending.
Surrey is among the richest places in the UK in terms of residents’ disposable income.
Mr Corbyn this afternoon revealed he had seen "leaked copies of texts" sent by Mr Hodge "intended for somebody called Nick" who works for ministers in the Department for Communities and Local Government (DCLG).
Downing Street sources denied the messages were intended for Nick King, a special adviser to Communities and Local Government Secretary Sajid Javid.
Mr Corbyn told MPs: "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'.
"Will the Government now publish this memorandum of understanding and, while they're about it, will all councils be offered the same deal?"
The Prime Minister replied: "What we have given all councils is the opportunity to raise a 3% precept on the council tax for that to go into social care."
She added: "What the Labour Party fails to understand is that this is not just a question of looking at money, it is a question of looking at spreading best practice and finding a sustainable solution."
Jeremy Corbyn accused Theresa May of arranging a 'sweetheart deal'
Is the same sweetheart deal on offer to every council facing the social care crisis created by the Government?
Mr Corbyn went on to describe a second text message and highlighted how Chancellor Philip Hammond and Health Secretary Jeremy Hunt both represent Surrey constituencies.
The Labour leader said: “There was a second text from the Surrey County Council leader to Nick – and in the second text it says 'The numbers you indicated are the numbers I understand are acceptable for me to accept and call off the R'.
"Now, I've been reading a bit of John le Carre and apparently ‘R’ means referendum.
"It's very subtle all this.
"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'.”
Mr Corbyn demanded the Prime Minister reveal “how much” was offered to Surrey to “kill this off”.
He added: “Is the same sweetheart deal on offer to every council facing the social care crisis created by the Government?"
SURREY COUNTY COUNCIL
Surrey County Council leader David Hodge insisted there was 'no deal' with ministers
Mrs May said she had made clear to Mr Corbyn that every council has the opportunity to raise council tax to fund social care.
She told the Labour leader: "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."
Mr Hodge insisted there was no deal with ministers over the decision to abandon the proposed 15 per cent council tax hike.
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."
Commenting on the row, senior Tory MP Sir Nicholas Soames posted on Twitter: "Absolute corker by Leader of Surrey CC what a bozo."
Absolute corker by Leader of Surrey CC what a bozo
— Nicholas Soames (@nsoamesmp) February 8, 2017
Labour’s shadow transport secretary Andy McDonald, appearing on the BBC’s Daily Politics programme, claimed “someone’s got to resign” over the row.
The Liberal Democrat's shadow health secretary Norman Lamb said: "If ministers did reach a memorandum with Surrey Council, it must be made public immediately.
“There shouldn't be a secretive, backdoor deal for a county which happens to have two Conservative Cabinet ministers while other councils are left high and dry. The social care crisis does not end at the borders of Surrey.
“Our social care system is being starved of cash and drained of workers, failing older people and putting huge pressure on the NHS.
“The Prime Minister must accept that social care services across the country are facing an existential threat and that more funding is urgently needed."