Finance aid over Iceland deposits

A Staffordshire council is the third in England to be visited by financial troubleshooters in the wake of the Icelandic banking crisis.

Tamworth Borough Council has said it has �7.5m spread across three of Iceland's banks.

The government is sending experts to district councils which could face problems. The other two are Uttlesford, Essex, and Wyre Forest, Worcestershire.

Tamworth Council said was at a loss to understand why it had been included.

'No financial problems'

The council said it was told on Wednesday afternoon that it was to receive a delegation to assist in dealing with problems arising from deposits with failed Icelandic banks.

"The council had no prior knowledge of this action and has not asked for any assistance beyond that required to retrieve monies owed to it," a statement said.

"The council confirms it has no major immediate financial problems and is at a loss to understand why it has been singled out for such 'support'."

Earlier, the council said that its total investment portfolio was �27m and there was no current threat to jobs or to its services.

Wyre Forest has said it has �9m in Icelandic banks, while Uttlesford has �2.2m - a fifth of its annual budget.

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