Councils Feel The Freeze In Iceland

The Local Government Association and the Government said today that it has established a ‘positive joint working’ relationship to ensure councils hit by the Icelandic banking crisis would be assisted.

Thirteen councils have said they may face short term financing difficulties, totalling £858m, through exposure to the Icelandic banks. However, none have said it will impact wage payments or services.In another 10 councils, specialists are establishing contact, fact finding and offering support and will report back to the Government and the LGA.

The Government and the LGA said they will continue to work with the administrators and the Icelandic Authorities to get the best and most rapid resolution of the situation relating.

The Government and the LGA last night refused to name the councils. However, The Independent established that Wyre Forest Council in Worcestershire, Uttlesford District Council in Essex and Tamworth Borough Council in Staffordshire were the three authorities receiving emergency help. Daventry in Northamptonshire and Braintree in Essex are other councils in difficulty.