Telford & Wrekin Council has avoided a £6 million hole in its finances after withdrawing money from one of the Icelandic banks swept up in the fallout from the credit crunch, it emerged today.
It comes as Prime Minister Gordon Brown announced yesterday a £50 billion rescue package for British banks.
Mr Brown declared war on city fat cats saying the days of “big bonuses” for banking bosses were over as London’s leading share exchange held steady following the announcement of the bailout.
“One of the conditions of us helping the banks is that we will have to reach an agreement about their executive remuneration,” he said.
Today a string of local councils were waiting to hear if their money was safe after deposits in Landsbanki and other Icelandic banks were put at risk following a banking collapse there.
But Telford & Wrekin Council was not a victim after its finance bosses moved the money elsewhere a number of weeks ago.
Attracted by a high interest rate and strong credit rating, the council had invested the money on a short-term basis but withdrew it before Landsbanki became the latest victim of the economic slump.
Council leader Andrew Eade said today: “Telford & Wrekin Council had £6 million with this Icelandic bank – equivalent to around four per cent of the cashable investment that the council makes and has to pay for its day-to-day operation and the 700 services we provide.
“Rather than simply leaving this money in a bank earning little or no interest, the council has actively managed this cashable investment money to provide extra income for the council.”
17 Comments
can Council leader Andrew Eade tell us why Telford & Wrekin Council runs a £150million surplus while most of us run on loans & overdrafts. Could it be that they just tax us more money than they can spend?
I believe they need x as a reserve as a legal requirement, but they do need all the extra to increase allowances, last year saw a wage bill increase of £6.7 million, then they need to pay all these consultants and quango’s.
Its great having a guarenteed income from the tax payer, yet they increased cost to carers, took money away from libaries, icrease council tax etc etc.
well done telford and wrekin, what a wise decision
Here we have Councils doing the right thing and they still moan.Well done T&W. It is not a surplus of money this is trading money that reduces over the year becasuse councils get most of their money at the start of the year.The wages bill did not go up 6.7 million but this is the wages bill.
Pepole who comment should think before they wright.
Nice to see while services are cut that T & W council have huge sums saved up in investment banks.
It seems the UK’s economic party is over, its time to clear the mess up and the drunks must be told that its time to go.
When can we expect our councils to offload the overpaid fancy titled jobsworths and clipboard warriors that exist for no particular good reason other than to leech off the already hard pressed council tax payers of this county.
Well done to T&W. I see poor little Bridgnorth is in the list as being £1m down but that’s much less than most.
R Jaggs said:
“The wages bill did not go up 6.7 million but this is the wages bill.
Pepole who comment should think before they wright.”
It’s NOT the wages bill - it IS the increase. PEOPLE who comment should think and learn to spell before they WRITE
C’mon Merc, be reasonable; these “overpaid fancy title jobsworths” are doing sterling work in protecting us all from penguins and single people. They deserve every penny they get - and more besides. I’m glad that T+W were sensible with their (sorry … our) money, otherwise how would we protected from such dangers? Anyway, that’s all from me, I’m off to the park to get drunk.
For your info R.Jaggs
The total wage bill for the Council was as follows:-
2005/2006 - £124,422,123
2006/2007 - £137,206,304
2007/2008 - £143,945,532
The total number of staff employed by the Council is a follows:-
2005/2006 = 5838
2006/2007 = 6013
2007/2008 = 6122
Figures as provided by T&W Council.
Its a poor show to the uk when ever councils put the money out of the uk, to me it more the question why? banking in the uk ? Should we.
see tory’s know best - labour would have invested in iceland if they were running T&W - another shrewd move by the conservative administration
“can Council leader Andrew Eade tell us why Telford & Wrekin Council runs a £150million surplus while most of us run on loans & overdrafts. Could it be that they just tax us more money than they can spend?”
Because people pay their council tax over 10 months, but the Council has to run for 12. So quite apart from emergency reserves, they have to build up a big pot of money by the end of January, to run the council for two months with nothing coming in.
they may have avoided the ice bank one but i bet alot more banks will fold yet and take some of OUR councils cash with them
clearly proves the Conservative council is smarter than the Labour government with money
John.
Don’t you pay 12 months of council tax in 10 months?
If it was paid over 12 months, maybe it would be a little more affordable.
A public funded body should have NO free cash to invest anywhere.
What the HELL is going on ???
WHY is ANY cash being invested???????
Surely IF council tax HAS to go UP every year as it does, becuase MORE CASH IS NEEDED TO MAKE ENDS MEET …… THEN SURELY THERE CAN’T be ANY spare cash at any time to invest ??????
Answers on a postcard please ??!!??!!