Council has cash in Iceland banks

Wiltshire County Council has confirmed it has £8m invested in troubled Icelandic banks.

Council leader Jane Scott said the authority had followed government advice to to invest surplus funds for the benefit of taxpayers.

She admitted the crisis, which has affected at least 20 other councils, would eventually have an impact on either council tax or services.

"We're not at the point of losing this £8m yet, so we wait and see," she said.

As local authority leaders sought an urgent meeting with the chancellor over the crisis, she called on the government to offer them the same protection as individual savers.

North Wiltshire district council has investments of £4m in Icelandic banks.

Council leader Dick Tonge said: "The district council is in robust financial health and this difficulty will not affect the services provided to the people of North Wiltshire.

"Based on the information we have at this time, we are confident that the monies deposited will be repaid."