Kent's Iceland Bank Risk: Is £50 million at risk?
October 8, 2008 10:48 PM
The Liberal Democrats are urging ministers to clear up the uncertainty"about hundreds of millions of pounds councils invested in Iceland's banks. Kent County Council is reported by the BBC (http://news.bbc.co.uk/1/hi/uk_politics/7659783.stm) to have up to £50m in Iceland-based banks including Landbanksi or Heritable, which was run by Landbanksi.
Although Chancellor Alistair Darling has protected Britons' savings in banks, it is not yet known if Council balances will be protected.
Liberal Democrat spokesperson Julia Goldsworthy said there was an "urgent need for clarification" and urged the government to "make clear how local authority funds will be protected".
"Ultimately this is council tax payers' money at risk and these are funds which are essential for the delivery of local services."
Local Government Association chairman Margaret Eaton said: "We are today seeking an assurance from the chancellor that councils' assets will be protected in the same way as personal assets. Town halls invested in Landsbanki as a reputable bank with a solid credit rating.
"In the short term, these councils are confident that they will have sufficient funds to tide them over for a considerable period of time."
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