Council's bank in administration

At least 80 councils have cash in Icelandic banks

Another West Midlands council has said it has money in a bank which has been placed in administration.

Newcastle-under-Lyme Borough Council, in Staffordshire, has £2.5m in Heritable Bank, which has Iceland bank Landbanski as its parent company.

Landsbanki was taken over by the Icelandic government and declared insolvent on Tuesday.

Nine more West Midlands councils and a police authority have accounts with troubled Icelandic banks.

A spokeswoman for Newcastle-under-Lyme council said the money in Heritable Bank was a small proportion of the authority's investment portfolio.

WEST MIDLANDS DEPOSITS Wyre Forest: £9m Stoke-on-Trent: £5m Solihull: £3m Rugby: £3m Nuneaton and Bedworth: £3m East Staffordshire: £4m Wychavon: £1.5m Bridgnorth: £1m Tamworth: Tbc West Midlands Police Authority: £5m

"We have not been told we have lost that money and are now waiting for news from the administrators, Ernst and Young.

"Council tax levels or service provision will not be affected whatever the outcome of the administration process," she said.

On Wednesday, it was revealed that at least 100 councils across England have money invested in Icelandic banks.

A delegation of Treasury officials is going to Iceland to discuss its banking crisis and the impact on UK individuals and councils with money in its banks.

Chancellor Alistair Darling has announced that all UK savers affected by the Icelandic bank crisis would be protected.

But the government has not yet offered the same for more than £900m known to have been invested in Icelandic banks by UK councils, police and transport authorities.

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Council cash in troubled bank