Surrey will hold a county-wide referendum over whether to raise council tax by 15 per cent - significantly more than £100 per household annually - to pay for social care.

Late last year Theresa May refused to increase central funding for social care, but granted local councils powers to raise council taxes to meet the rising costs themselves.

Surrey County Council’s extraordinary decision will almost certainly be copied by other authorities unable to meet the mushrooming costs of caring at home care for the elderly.

Particularly embarrassing for the government is the fact that Surrey is overwhelmingly Conservative, and includes the constituency of the Health Secretary Jeremy Hunt, as well as Chancellor Philip Hammond, the former Justice Secretary Michael Gove and Transport Secretary Chris Grayling.

Surrey Council leader David Hodge said: "We have to set a budget that will protect vital services for Surrey residents.

"Government has cut our annual grant by £170m since 2010 - leaving a huge gap in our budget."

Claire Kober, chairwoman of the Local Government Association's resources board, said: "Services supporting the elderly and disabled are at breaking point.

"It cannot be left to council taxpayers alone to try and fix them.