Page last updated at 20:17 GMT, Thursday, 9 October 2008 21:17 UK

Council hit by Icelandic crisis

Landbanksi branch
More than 100 councils have deposited money in Icelandic banks

A Greater Manchester council is one of more than 100 local authorities to be hit by the Icelandic banking crisis.

A spokesman for Bolton Council confirmed it had deposited 6m in the failing Landsbanki Group.

Several other councils in the North West also invested in the country's banks, including those in Cheshire and Lancashire.

Bolton Council said the money deposited was reserved to cover insurance claims and "unexpected problems".

Council services are not expected to be affected.

So far local authorities in England, Wales and Scotland have revealed that they have deposits worth 799m in total.

The figure exceeds 900m when investments by 15 police authorities and Transport for London are added.

Councils 'not reckless with cash'
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In full: Councils facing losses
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Q&A: Council funding at risk
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Crisis-hit Icelanders stay cool
08 Oct 08 |  Business

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