AN extra £7 million of government cash has been awarded to Surrey County Council in a surprise move by ministers.

News of the extra cash award comes after a recent report stated there were "fundamental flaws" in the government's cash allocation to local authorities.

The £7.3 million cash will form part of the council's annual grant settlement. Councillors will be able to choose for themselves in which services it is invested as it has not been "ring fenced" by government ministers.

Although the council has welcomed the news, a spokesman was unable to confirm how the extra cash will affect the setting of next year's council tax.

Meanwhile, leader of the Lib Dems on Surrey County Council, Janet Maines, has urged the Tories in control to use the extra funding to keep council tax increases to a minimum.

Mrs Maines added: "This rushed announcement also makes clear how unsustainable and flawed is the current system of council tax.

"Any form of taxation must be related to ability to pay, council tax is demonstrably not such a system."