Council not borrowing to pay way

A Devon council will not borrow money to meet its October wage bill and other payments because it cannot access money invested in Icelandic banks.

Plymouth City Council said it had juggled its cash flow to avoid taking a loan and to resolve other potential money problems in the near future.

It had faced a £9m shortfall for October and earlier this week approved plans to borrow £10m.

The city council has about £13m of its assets frozen in Icelandic banks.

Ian Bowyer, the council cabinet member for budget, said: "The gap has now been plugged and all council liabilities, including salaries and wages, can now be met without us having to resort to additional borrowing."