Jeremy Corbyn has demanded Theresa May reveal the 'sweetheart deal' struck with Surrey County Council to halt a referendum on a 15 per cent council tax hike.

Tory-run Surrey last month announced plans for the poll, blaming government cuts for leaving a huge black hole in the authority's social care budget.

But the plan was suddenly abandoned yesterday as Surrey council leader David Hodge said he would pursue a 4.99 per cent council tax rise instead.

Mr Corbyn stunned Mrs May by revealing text messages sent by Mr Hodge at today's PMQs that clearly link 'numbers' agreed with Treasury chief secretary David Gauke and being able to 'kill off' the referendum.

No 10 denied there was any 'extra cash' provided in return for cancelling the referendum and said there was 'no deal' for Surrey, which is home to both Chancellor Philip Hammond and Health Secretary Jeremy Hunt.

Mr Hodge has insisted that the decision to scrap the council tax rise 'was ours alone and there has been no deal' with the Government.

Jeremy Corbyn, pictured at today's PMQs, has demanded Theresa May reveal any deal that was struck with Surrey County Council to convince it to call off a referendum on a 15 council tax hike

Theresa May, pictured at Prime Minister's Questions today, rejected Mr Corbyn's questions about text messages from Surrey council leader David Hodge indicating ministers had struck a deal with Surrey to avoid the referendum

No 10 denied there would be 'extra cash' for Surrey in direct response to the referendum threat but refused to confirm details of any change between the provisional local government settlement in December and the forthcoming final settlement.

The referendum would have been acutely embarrassing for both Chancellor Philip Hammond and Health Secretary Jeremy Hunt, both of whom represent Surrey constituencies.

In the Commons, Mrs May refused to reveal any details to Mr Corbyn, insisting instead running a 'strong economy' was vital to funding a nationwide health system.

She said the Government had allowed councils to raise the council tax precept for social care by 3 per cent to cover problems.

In a rare strong performance, Mr Corbyn said revealed the text messages, sent by Mr Hodge to an unidentified man called 'Nick'.

Mr Hodge told Nick he understood David Gauke, the chief secretary to the Treasury, had been involved in the agreement, and said the 'numbers that I understand are acceptable for me to accept and call off the R'.

Labour said this could be 'interpreted' as a deal to call of the referendum.

The extraordinary text messages revealed by Mr Corbyn are from Surrey council leader David Hodge to a man called 'Nick'. He suggests an agreement is close for him to call off a council tax referendum on hiking charges by 15 per cent

Mr Hodge says Chief Secretary David Gauke has been involved in the discussion and makes a clear link between the 'numbers' and calling off the 'R' - thought to mean referendum

Minutes after PMQs ended, Mr Hodge issued a statement that said: Surrey's decision not to proceed with a 15 per cent council tax increase was ours alone.

'There has been no deal with Surrey County Council and the Government.'

He added: 'However, I am confident the Government now understands the real pressures in adult social care and the need for a lasting solution.'

Mrs May's official spokesman denied there was a 'sweetheart deal' for Surrey and insisted: 'The whole issue around raising council tax is a matter for Surrey councillors.'

No 10 denied the 'Nick' who received the messages was Nick King, the special advisor to communities secretary Sajid Javid.

It is thought this is who Mr Hodge believed he was sending messages to but the messages were received by someone else.

A No 10 source said there had been the usual 'entirely appropriate' discussions between Surrey council and the Department for Communities and Local Government.

Talks are held each year between the Government and town halls about annual budget settlements.

In a rare strong performance, Mr Corbyn said revealed the text messages, sent by Mr Hodge to an unidentified man called 'Nick'

Challenging the PM about the texts, Mr Corbyn said: 'These texts read ''I'm advised that DCLG officials have been working on a solution and you will be contacting me to agree and MoU.''

'Will the Government now publish this memorandum of understanding and, while they're about it, will all councils be offered the same deal?'

Mrs May replied: 'What we have given all councils is the opportunity to raise a 3 per cent precept on the council tax for that to go into social care.

'He talks about understanding - 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...the last thing social care providers need is another one of Labour's bouncing cheques.'

The Labour leader pressed again, asking: 'There was a second text... It says ''the numbers you indicated are the numbers I understand are acceptable for me to accept and call off the R.''

Mrs May refused to reveal any details to Mr Corbyn, insisting instead running a 'strong economy' was vital to funding a nationwide health system

'I've been reading a bit of John Le Carre and apparently R means referendum.

'He goes on: ''Really want to kill this off''.

'So, how much did the Government offer Surrey to kill this off and is the same sweetheart deal on offer to every council?'

An off balance Mrs May accused the Labour leader of deploying 'alternative facts' and added: 'What Labour really need is an alternative leader.'

Surrey council leader David Hodge today denied he had been bought off by ministers after he called a council tax referendum

In his final question, Mr Corbyn demanded: 'My question was what deal had been offered to Surrey to get them to call off a referendum and will the same deal be offered to every other council?

'Every day that the PM fails to act, this crisis gets worse, so will she finally come clean and provide local authorities with the funding they need to fund social care properly that our often elderly and vulnerable people can be treated with the support and dignity they deserve in a civilised society?'

Mrs May hit back: 'The deal that is on offer to all councils is the one I've already set out but let me just be very clear with the RHG because as ever he stands up and consistently asks for more spending, more money, more funding.

'What he always fails to recognise is they can only spend money on social care and the NHS if you have a strong economy to deliver the wealth you need.

'There is a fundamental difference between us. When I talk about £500bn that's the money we'll be spending on the NHS this Parliament, when Labour talk about £500bn it's the money they want to borrow.

'Conservatives investing in the NHS, Labour bankrupting Britain!'