This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7660438.stm
The article has changed 32 times. There is an RSS feed of changes available.
Previous version
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Next version
Version 24 | Version 25 |
---|---|
Councils 'not reckless with cash' | Councils 'not reckless with cash' |
(about 1 hour later) | |
Local authorities have not been "reckless" in investing more than £760m with Icelandic banks that have now failed, the government has said. | |
Deposits from about 100 councils could be at risk, the BBC has learned. | Deposits from about 100 councils could be at risk, the BBC has learned. |
Ministers have met council leaders and are promising "appropriate" help on a "case-by-case basis". | Ministers have met council leaders and are promising "appropriate" help on a "case-by-case basis". |
Gordon Brown said he was considering "further action", but the government is not offering to guarantee authorities' deposits with Icelandic banks. | Gordon Brown said he was considering "further action", but the government is not offering to guarantee authorities' deposits with Icelandic banks. |
'Not pleasant' | 'Not pleasant' |
The prime minister told the BBC that the Icelandic authorities' handling of accounts had been "effectively illegal" and "completely unacceptable". | The prime minister told the BBC that the Icelandic authorities' handling of accounts had been "effectively illegal" and "completely unacceptable". |
The government has frozen the UK assets of Icelandic bank Landsbanki, saying local authorities will benefit from this. They have failed not only the people of Iceland; they have failed people in Britain Gordon Brown class="" href="/1/hi/uk_politics/7662027.stm">Iceland's actions 'illegal' | |
But Iceland's prime minister, Geir Haarde, said it was "not very pleasant" to have laws designed to deal with terrorists used against his country. | But Iceland's prime minister, Geir Haarde, said it was "not very pleasant" to have laws designed to deal with terrorists used against his country. |
BBC News has so far learned that local authorities across England, Wales and Scotland hold deposits worth £760.8m in total. | BBC News has so far learned that local authorities across England, Wales and Scotland hold deposits worth £760.8m in total. |
The figure reaches £896.5m when investments by 15 police authorities and Transport for London are added. | The figure reaches £896.5m when investments by 15 police authorities and Transport for London are added. |
Treasury Ministers Stephen Timms and Ian Pearson and Local Government Minister John Healy have held talks with the Local Government Association, which represents councils in England and Wales. | |
In a joint statement afterwards they said: "Government and the LGA agreed that there is no evidence of recklessness by local authorities." LARGEST CONFIRMED DEPOSITS Kent County Council, £50mNottingham City Council, £42m Transport for London, £40mNorfolk County Council, £32.5mDorset County Council, Hertfordshire County Council, £28mBarnet Council, £27mSomerset County Council, £25mHillingdon Council, £20mNeath Port Talbot Council, £20mWestminster City Council, £17mHertfordshire County Council, £17mBrent Council, £15m class="" href="/1/hi/uk/7660741.stm">Full list of councils affected class="" href="/1/hi/uk_politics/7660800.stm">Q&A: Council funds at risk class="" href="/1/hi/wales/7660300.stm">Welsh councils concerned class="" href="/1/hi/scotland/north_east/7661206.stm">Scottish impact class="" href="/1/hi/england/7660684.stm">Impact on North of England councils class="" href="ID=">Kent vow over £50m investment class="" href="/1/hi/england/somerset/7661123.stm">Worries in Somerset over deposits | |
They added: "We will judge what's appropriate on a case-by-case basis but, in previous situations, support has included helping local authorities restructure their financial priorities, providing additional expertise and capitalisation of expenditure." | |
Councils say they have followed Treasury advice by investing surplus money to deliver the highest return for taxpayers. | Councils say they have followed Treasury advice by investing surplus money to deliver the highest return for taxpayers. |
According to figures acquired from local authorities, Kent County Council has the largest deposit, worth £50m. | According to figures acquired from local authorities, Kent County Council has the largest deposit, worth £50m. |
Nottingham City Council has invested £42m, while Transport for London has £40m deposited in one of the affected banks. | Nottingham City Council has invested £42m, while Transport for London has £40m deposited in one of the affected banks. |
The Conservatives have warned that town halls could face a "massive financial shock" and be forced into council tax hikes or cuts in local services. | The Conservatives have warned that town halls could face a "massive financial shock" and be forced into council tax hikes or cuts in local services. |
"They are not going to find it easy in the short term," shadow communities secretary Eric Pickles said. | "They are not going to find it easy in the short term," shadow communities secretary Eric Pickles said. |
He added: "We need to look at the number of authorities that will be facing a cash-flow problem - some have their payroll on this, for others it's in terms of long-term investment." | He added: "We need to look at the number of authorities that will be facing a cash-flow problem - some have their payroll on this, for others it's in terms of long-term investment." |
The Lib Dems said the money at stake was "essential" for delivering local services and urged ministers to "make clear" how such funding would be protected. | The Lib Dems said the money at stake was "essential" for delivering local services and urged ministers to "make clear" how such funding would be protected. |
The LGA insisted all the councils involved had enough money to ensure frontline services should not be affected. | The LGA insisted all the councils involved had enough money to ensure frontline services should not be affected. |
But it wants the same protection for councils as has been given to personal customers of IceSave and other failed Icelandic banks. | But it wants the same protection for councils as has been given to personal customers of IceSave and other failed Icelandic banks. |
Do you work, or have you previously worked, for a local council? Are you concerned about local council investments in Icelandic banks? Send us your comments using the form below: | Do you work, or have you previously worked, for a local council? Are you concerned about local council investments in Icelandic banks? Send us your comments using the form below: |