Friday, October 10, 2008

Councils trapped in £1bn black hole

By Martin Hickman and Ben Russell Friday, 10 October 2008

Council tax payers are facing increased bills or cuts in services to pay for a £1bn black hole in Britain's town hall finances caused by the sudden collapse of Iceland's banks.
One by one, 127 public bodies owned up yesterday to having multimillion-pound sums frozen with Icelandic financial institutions that have gone bust. Gordon Brown, threatened to retaliate against Iceland's "unacceptable behaviour" by taking legal action to seize its assets in the UK.

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