Menu
05/03/2009
Help For Local Authorities With Cash In Icelandic Banks
The Government has acted to protect the public from potential service cuts or council tax increases that could result from local authority investments in Icelandic banks while efforts continue to recover lost investment funds.
Local Government Minister John Healey has laid regulations before Parliament that enable authorities to postpone any possible budgetary impact of this until 2010-11.
Without this help, they would have to make immediate provision for possible losses in their revenue budgets - with potentially serious impacts on council tax or services.
New statistics published today show that as at the end of last year, 125 local authorities in England had outstanding investments of around £923.2 million in Icelandic banks
John Healey said: "Following the failure of Icelandic banks last year the Government - with the Local Government Association - acted immediately to ensure no local authority faced serious short term difficulty as a result. We continue to work closely with the banks and Icelandic authorities to help local authorities and other creditors recover their money.
"This money isn't lost but it is at risk so under normal financial rules this risk would need to be taken into account in their budgets. I was concerned about the possible, and potentially unnecessary, effect this could have on services and council tax. That's why I am taking this exceptional step that gives authorities some breathing space that should allow them to be clearer what sums, if any, are still at risk. Meanwhile the Government will continue its efforts to ensure that investors recover as much as possible from the banks."
The regulations come into force on 31 March 2009 and apply immediately.
(JM/BMcC)
Local Government Minister John Healey has laid regulations before Parliament that enable authorities to postpone any possible budgetary impact of this until 2010-11.
Without this help, they would have to make immediate provision for possible losses in their revenue budgets - with potentially serious impacts on council tax or services.
New statistics published today show that as at the end of last year, 125 local authorities in England had outstanding investments of around £923.2 million in Icelandic banks
John Healey said: "Following the failure of Icelandic banks last year the Government - with the Local Government Association - acted immediately to ensure no local authority faced serious short term difficulty as a result. We continue to work closely with the banks and Icelandic authorities to help local authorities and other creditors recover their money.
"This money isn't lost but it is at risk so under normal financial rules this risk would need to be taken into account in their budgets. I was concerned about the possible, and potentially unnecessary, effect this could have on services and council tax. That's why I am taking this exceptional step that gives authorities some breathing space that should allow them to be clearer what sums, if any, are still at risk. Meanwhile the Government will continue its efforts to ensure that investors recover as much as possible from the banks."
The regulations come into force on 31 March 2009 and apply immediately.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
06 April 2004
Project to help vulnerable children praised
A project that uses state of the art technology to identify vulnerable children before they get to the point of offending has been praised by the Local e-Government Minister for successfully concluding the first phase of its pilot scheme.
Project to help vulnerable children praised
A project that uses state of the art technology to identify vulnerable children before they get to the point of offending has been praised by the Local e-Government Minister for successfully concluding the first phase of its pilot scheme.
08 December 2004
Local authorities team up for joint working on waste
A new project to identify and propose solutions to barriers to joint working between local authorities was launched today by Environment Minister Elliot Morley.
Local authorities team up for joint working on waste
A new project to identify and propose solutions to barriers to joint working between local authorities was launched today by Environment Minister Elliot Morley.
19 September 2003
'Deeply offensive' Section 28 clause repealed
Section 28, the controversial clause which banned local authorities from 'promoting' homosexuality, has been repealed following the Local Government Act's receipt of Royal Assent. The pressure group for gay rights, Stonewall, welcomed the move saying that Section 28 had "stigmatised lesbian, gay and bisexual people since 1988".
'Deeply offensive' Section 28 clause repealed
Section 28, the controversial clause which banned local authorities from 'promoting' homosexuality, has been repealed following the Local Government Act's receipt of Royal Assent. The pressure group for gay rights, Stonewall, welcomed the move saying that Section 28 had "stigmatised lesbian, gay and bisexual people since 1988".
02 May 2003
UK’s pilot voting schemes hailed as success
Voter apathy was a hallmark of the recent elections, as only a third of the electorate turned to cast their votes, but various pilot voting schemes have been hailed as a success.
UK’s pilot voting schemes hailed as success
Voter apathy was a hallmark of the recent elections, as only a third of the electorate turned to cast their votes, but various pilot voting schemes have been hailed as a success.
07 March 2007
Reid announces clampdown on illegal immigrants
Home Secretary John Reid has announced a series of measures aimed at preventing illegal immigrants coming to the UK.
Reid announces clampdown on illegal immigrants
Home Secretary John Reid has announced a series of measures aimed at preventing illegal immigrants coming to the UK.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
