Government to fund Icelandic losses
NORTH Lincolnshire Council will receive a cash injection to help it cope with money lost in the Icelandic bank crash.
The Government has promised local authorities will not be forced to increase council tax in order to cover for the millions lost.
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In October, when the financial crisis hit, the Scunthorpe Telegraph revealed the local council had lost £5.5-million of taxpayers' money.
The authority had £2-million invested with Landsbanki, one of the major financiers to go bust, and a further £3.5-million with its UK subsidiary, Heritable.
Until now, it was uncertain how the funds would be recovered, but Local Government Minister John Healey has now promised a 4.2 per cent funding increase to all local authorities.
Elliot Morley, MP for Scunthorpe, said: "I mentioned this in a meeting with the Iceland finance minister. I expressed my concern for local authorities, particularly North Lincolnshire– I don't want to see people suffer as a result of this," he said.
"I'm very pleased to see this come to fruition, it was important for authorities just to know where they stood.
"This was not the council's fault, the money had been invested sensibly."
For the full story, buy today's Scunthorpe Telegraph.
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by Geoff, Ashby
Friday, November 28 2008, 4:38PM
“Tracy - Sensible comment and deserves an answer from our MP.”
by Tracey, Brigg & Wolds
Friday, November 28 2008, 1:23PM
“10 comments removed!! We rattled a few feathers for some heavyweight to pull strings and the plug on this one!?
I am now advised that the BBC has published the most comprehensive list of local councils with money in Icelandic banks.
//news.bbc.co.uk/1/hi/uk_politics/7660741.stm
There are 469 local councils in the UK. Presumably 358 local councils chose not to invest in the Icelandic banks; with Brighton and Hove and South Norfolk District Councils pulling out of Iceland in time before the crash.
Mr Morley please will you qualify to council tax payers of North Lincs your questionable defence of NLC and assertion that they were not at fault and acted sensibly in investing £5.5 million of our money, and more importantly by failing to respond to the publicised FSA warnings and the evident problems and equally pulling out our £5.5 million before the crash??
If NLC were not at fault, WHO WAS?”
by Tracey, Brigg & Wolds
Thursday, November 27 2008, 7:35PM
“What to become just another proper, heavyweight, patronising, chauvinistic and sullied politician, like the rest. No thanks. There are too many as it is, especially in North Lincs.”
by Blackbeard, Queen Anne's Revenge
Thursday, November 27 2008, 7:26PM
“Mixing it with Heavyweights you say, Are you sure about that. Brace my yard-arm meee laddi”
by Blackbeard, Queen Anns Revenge
Thursday, November 27 2008, 7:23PM
“Give the poor weee lassie a chance, she might have feelings you know. Snap the yard brace on my ship any time.”