Thursday, October 09, 2008

Local Councils crash

It has been announced that hundreds of millions of pounds of local council funding was held in bank accounts connected to Iceland meaning that there is a chance that it will all be lost after the crash in the country’s financial sector. The Icelandic authorities have made good savings for nationals but as yet there has been no word on the various overseas divisions connected to the country’s banks – all of which were nationalised a couple of days ago.

So what are the consequences for the UK tax payer?

While so far the local authorities with exposure to Icelandic banks have refused to confirm or deny what the future holds, there is likely to be a cut in local services or an increase in local taxes. However, this episode has also highlighted exactly how much money the local authorities have in savings accounts at the same time as increasing council taxes for millions of people around the UK.

Many believe that either way the UK tax payer will have to foot the bill as these local authorities are pushing for the government to reimburse the funds they may lose, at the overall expense of the tax payer. A lose lose situation for the tax payer seems almost certain!
http://financialadvice.co.uk/news/3/householdbills/8134/Local-councils-lose-millions-to-Icelandic-crash.html

Authorities in London are believed to have about £200 million in Icelandic banks. They include Westminster, which said it had £17 million split between Landsbanki and Heritable; Sutton — £5.5 million — and Havering, which has investments totalling £12.5 million. Outside the capital, Kent County Council said that it had £50 million deposited in Icelandic banks — £15 million with Glitnir Bank, £17 million with Landsbanki and just over £18 million in its British subsidiary, Heritable.
http://www.timesonline.co.uk/tol/news/politics/article4910126.ece

NWN: We hear that 98 councils are effected to the tune of half a £billion

11 comments:

Anonymous said...

WTF!!!!Nottingham has lost £42million

Why wasn't the money invested in local business and their own communities?

Anonymous said...

I wonder if these people will take pay cuts?

Gordon Brown, Prime Minister = £188,848
Ron Hilton, CEO Staffordshire County Council = £192,000
Stephen Hughes, CEO Birmingham City Council = £174,209
Paul Sheehan, CEO Walsall Metroploitan Borough Council = £160,000
Andrew Sparke, CEO Dudley Metropolitan Borugh Council = £143,748.
Allison Fraser, CEO Sandwell Metropoliton Borough Council = £139,461
Richard Carr, CEO Wolverhampton City Council = £120,000

Kevin Hughes said...

It still will not take them away from Eastenders!!

Anonymous said...

I suspect that might be the end of a lot of peoples local governemnt pensions

Anonymous said...

Those pay awards are chicken feed compared to this one in tiny Suffolk
£220K!


http://news.bbc.co.uk/1/hi/england/7290778.stm

boltonboy said...

But what would nationalists have done differently?

Presumably:

1. Invest only in British institutions (whatever that means these days! After all, the Post Office savings account is Irish-owned!). My local authority actually has that as a policy already, and has been criticised for not going for the better returns available elsewhere !!!

2. er .... any suggestions?

Anonymous said...

Who or what started this melt down and panick selling of stock's and share's and who will be buying all theis stock's and share's?.
4 buy two's ? and other speculater's i bet ."loup-garou",.

H.R. Rumpole.

Anonymous said...

No worries!

The "contribution" that recent immigrants have made to our economy
will more than make up for these losses.

Anonymous said...

How is it that local authorities ,local council's and police have had all this money to invest in forigen banks and not our own ?
Councils allways tell us they are cash straped ? strange ? yet they pay themselfes big wages and now we kno that they have invested millons of ££££ OF RATEPAYERS CASH ABROAD in banks not in the UK ?

Theis elected people councilors etc seem to be a law unto themselfs invest abroad,say we are cash straped,put up the rates,and pay us handsomley £££loveley jubley£££ clever curupt ass holes.
who gave theis councilers the authority to invest in banks rather tha local communities ,well! you did you dullards by voting for the con/lab party's
PUT UP THE RATES QUICK WE NEED THE MONEY OR WE CUT SERVICE'S and do not forget top vote for us next year as i need this well paid job.

John conman cronin.

Anonymous said...

No worries!

The "contribution" that recent immigrants have made to our economy
will more than make up for these losses.

Yeah right, like the Afghan single mother of seven, who lives, courtesy of the taxpayer, in a million pound mansion! As the economy goes into meltdown (manipulated by greedy banksters of course) we must thank our lucky stars, that now, in our darkest hour, fate has sent us, all the way from Afghanistan, and bypassing all countries in between, such welfare dependents.

ENGLISHMAN said...

Every chief executive of all the affected councils,must be held personally responsible and legally liable for these losses,we the people demand to see just what "invesments" were made,where and what the returns were,always supposing that the interest has not found its way into any ceo's sticky fingers and now resides in a bank in the bahamas.Is it not time that we exacted some penalty from them for thier incompetence and thier willful indifference to losing the taxpayers money?Or like lamont they will be allowed to just walk ayway ,stating that they regret nothing?

Barcelona - be careful what you wish for !!!  ---------------------------------------------------- More than 160,000 march in Barcelona...