No assurances on Icelandic cash

THERE is no assurance forthcoming from Chancellor Alistair Darling that council tax payers will not be hit by the collapse of the Icelandic banks.

Last week, the Scunthorpe Telegraph revealed how millions of pounds of taxpayers' money in North Lincolnshire could be at risk because of the Iceland banking crisis.

The country's three largest banks, Glitnir, Landsbanki and Kaupthing, have announced huge losses and one has been placed in receivership, rendering the country effectively bankrupt.

It has been revealed North Lincolnshire Council has invested £5.5-million in the stricken Icelandic banks.

The council has confirmed it has £2-million invested with Landsbanki and £3.5-million with its UK subsidiary Heritable.

They are among around 40 local authorities to have invested in the stricken banks.

Today Mr Darling refused to make any pledge on bail-out plans for local authorities.

Speaking at a press conference with Prime Minister Gordon Brown in 10 Downing Street, Mr Darling simply said there are on-going discussions between the Local Government Association (LGA) and the Department for Communities and Local government (DCLG).

Mr Darling said: "There will be a further announcement on Landsbanki very shortly, on action we have taken to allow British businesses and depositors to be able to operate.

"We have done that by taking a security over assets that we have in this country."

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