Peston has some more background.
I have spoken to David Hodge, the leader of Surrey Council, whose texts were read out at Prime Minister's Questions by Jeremy Corbyn as evidence of a possible sweetheart funding deal between the government and Surrey Council.
Hodge said he "swears on the bible there was no sweetheart deal".
But he concedes the texts he sent were supposed to go to Nick King, the special adviser to Sajid Javid.
Instead they went - by mistake - to a Labour councillor, Hodge told me. He is furious because he feels that the honour code of members of the Local Government Association, that they don't leak against each other, has been breached by the leaker.
Certainly the leaks make it look as though there was some kind of deal - because they contain the phrase "the numbers you indicated are the numbers that I understand are acceptable for me to accept and call off the R....."
Now the "R" in question is the controversial referendum that Surrey Council was proposing to hold, to authorise a stonking 15% increase in council tax.
This referendum was called off yesterday - which was taken by Corbyn as circumstantial evidence that Surrey had been bought off by Javid and the Department of Communities and Local Government.
This referendum and council-tax rise were hugely embarrassing to the government, because Hodge had made it clear Surrey needed the extra money to fill a black hole in social care.
Having dropped the referendum, Surrey is now imposing a smaller 4.99% rise in council tax.
Hodge told me he remains deeply concerned by what he described as the "crisis in social care" - which he says is a huge contributor to the shortage of beds in hospitals, with old people unable to leave hospitals because the money isn't available to care for them outside.
He says that the reason he called off the referendum is that he is persuaded the government is working on proposals that may put social care on a more sustainable footing.
If he was given an inside track on the government's outline ideas to restore funding for social care, that too would be embarrassing to the prime minister.
When attacked on the alleged leaks by Jeremy Corbyn today, Theresa May looked rattled.