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| Councils' cash with Iceland banks | |
| (30 minutes later) | |
| The Tories and Lib Dems are urging ministers to "clear up the uncertainty" about hundreds of millions of pounds councils invested in Iceland's banks. | The Tories and Lib Dems are urging ministers to "clear up the uncertainty" about hundreds of millions of pounds councils invested in Iceland's banks. |
| Chancellor Alistair Darling has protected Britons' savings in banks which are now in default. | Chancellor Alistair Darling has protected Britons' savings in banks which are now in default. |
| But at least 20 councils in England and Wales are known to have deposits in Landsbanki - some of tens of millions. | But at least 20 councils in England and Wales are known to have deposits in Landsbanki - some of tens of millions. |
| For the Tories, Eric Pickles said local government finances were at risk as they were not covered by the guarantee. | For the Tories, Eric Pickles said local government finances were at risk as they were not covered by the guarantee. |
| Levels revealed | Levels revealed |
| Kent County Council alone has £50m in Iceland-based banks, while Westminster City Council revealed it had deposits totalling £17m. | Kent County Council alone has £50m in Iceland-based banks, while Westminster City Council revealed it had deposits totalling £17m. |
| Sutton Council in south London confirmed it had exposure totalling £5.5m, and Havering Council in east London said it had investments worth £12.5m. | Sutton Council in south London confirmed it had exposure totalling £5.5m, and Havering Council in east London said it had investments worth £12.5m. |
| North Lincolnshire Council has £2m invested with Landsbanki and £3.5m in the firm's UK bank, Heritable. North East Lincolnshire Council said it had £2.5m on deposit with Landsbanki. | |
| Hertfordshire County Council has £17m invested, while Buckinghamshire has £5m - the same sum as Cornwall County Council. | |
| The Local Government Association (LGA), which represents councils in England and Wales, says it has identified more than 20 councils which are believed to have deposits in Landbanksi or Heritable. | |
| It is still trying to work out the sums involved but believes councils had in the "single figure millions of pounds" but others had deposits "running into the low tens of millions". | It is still trying to work out the sums involved but believes councils had in the "single figure millions of pounds" but others had deposits "running into the low tens of millions". |
| The Conservatives say their own research has identified at least one London council that had banked £40m, one in the South East which had a £30m deposit and others with £20m or £25m. | The Conservatives say their own research has identified at least one London council that had banked £40m, one in the South East which had a £30m deposit and others with £20m or £25m. |
| The LGA says it does not expect "significant financial problems" in the short term as town halls put money in a wide range of institutions and vital frontline services should not be affected. | The LGA says it does not expect "significant financial problems" in the short term as town halls put money in a wide range of institutions and vital frontline services should not be affected. |
| My number one concern though is to make sure we protect individual savers Alistair DarlingChancellor | My number one concern though is to make sure we protect individual savers Alistair DarlingChancellor |
| But it wants the same protection as private savers, saying money had been prudently managed in line with the government's own guidance. | But it wants the same protection as private savers, saying money had been prudently managed in line with the government's own guidance. |
| LGA 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. | LGA 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." | "In the short term, these councils are confident that they will have sufficient funds to tide them over for a considerable period of time." |
| 'Urgent clarification' | 'Urgent clarification' |
| For the Lib Dems Julia Goldsworthy said there was an "urgent need for clarification" and urged the government to "make clear how local authority funds will be protected". | For the Lib Dems 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," she said. | "Ultimately this is council tax payers' money at risk and these are funds which are essential for the delivery of local services," she said. |
| For the Conservatives Mr Pickles said no council could have foreseen the collapse of Iceland's banks and said people would be worried about their council tax bills and local services. | For the Conservatives Mr Pickles said no council could have foreseen the collapse of Iceland's banks and said people would be worried about their council tax bills and local services. |
| Earlier in the Commons, he asked the chancellor whether he was "wholly content" that councils' investments would not be covered and the burden "should now fall on council tax payers". | Earlier in the Commons, he asked the chancellor whether he was "wholly content" that councils' investments would not be covered and the burden "should now fall on council tax payers". |
| The chancellor replied that he was aware of the problem and it was something he would look at. But he added: "My number one concern though is to make sure we protect individual savers and I'm sure we are at one on that." | The chancellor replied that he was aware of the problem and it was something he would look at. But he added: "My number one concern though is to make sure we protect individual savers and I'm sure we are at one on that." |