Councils ‘negligent’ over Icelandic banks

Seven local authorities acted negligently by depositing £33 million of taxpayer’s money into Icelandic banks just a few days before their collapse, the Audit Commission said today. The Commission singled out the authorities for breaching their own protocols. Overall 127 English councils had more than £950 million deposited in the banks when they went into administration. The Local Government Association said councils expect to get back the ‘lion’s share’ of their money.