Anne Main presses Chancellor over Council's Icelandic investments
10th October 2008
Following yesterday's announcement that Herts County Council had invested £28m in troubled Icelandic banks, Anne Main has written to the Chancellor of the Exchequer urging him to ensure that Council Tax payers do not bear the burden of any losses.
Following yesterday's announcement that Hertfordshire County Council had invested £28m of taxpayers' money in troubled Icelandic banks, Anne Main, MP for St Albans, has written to the Chancellor of the Exchequer to urge him to take action to ensure that Council Tax payers are not bear the burden of any losses.
The Council had deposits of £17m in collapsed bank Landbanksi, £7m in Glitnr and £4m in Kaupthing. Hertfordshire Police Authority had also invested £3m in Heritable Bank, the UK branch of Landbanksi.
Anne said:
"This is a shocking turn of events which if the Government doesn't come to our aid - and the aid of other authorities in similar situations - could lead to a gaping black hole in finances which would inevitably have to lead to cuts in services and/or Council Tax rises.
At time when we are all under huge financial pressures, taxpayers simply cannot afford rises in Council Tax, and it would be unreasonable to shift the burden onto them.
The Leader of the County Council contacted me yesterday and asked if I would lend my support by pressing the Council's case with the Government and I have, therefore, written to Chancellor of the Exchequer as a matter of urgency to raise this with him.""
