Icelandic bank cash returned to council funds

Chorley Town Hall
Chorley Town Hall
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The majority of the money lost in the Icelandic banking crash has now been returned to Chorley Council.

It had invested £2m of taxpayers’ money in Landbanski before it collapsed in 2008.

The council received £666,000 back in 2012 and has now recovered a further £1,109,336.72.

It means that around 93 per cent of the money invested has been recovered.

The money remained on the council’s balance sheet while frozen, so will not be an extra financial boost to the council’s coffers.

And it has lost the remaining seven per cent - £143,663.28.

Coun Peter Wilson, who is responsible for resources at the council, said: “Over the last few years, we have been working extremely hard to recover Chorley’s frozen Icelandic deposits and I’m pleased that almost all of the money has been returned.

“We had the option to recover the majority of the money now or wait for a number of years where even then there was no guarantee the full amount would be returned.

“Following advice from the Local Government Association, we, and most councils, took the chance to resolve the matter now and we will continue to invest in delivering excellent services to residents across the Chorley borough.”

However, council leader, Coun Alistair Bradley, criticised the former Conservative administration for investing the money in Icelandic banks.

He said: “In a way it’s good news that we now have that money, but I’m still annoyed that the previous administration assured us we would get 100 per cent back and we have lost the people of Chorley seven per cent of £2m.

“That was money we shouldn’t have invested there.

“Chorley Council is missing that money and we could be doing a lot of things with it.”

Coun Greg Morgan, leader of Chorley Conservatives, said: “It’s of course unfortunate that some money has been lost, but I certainly don’t think you can lay the blame specifically on the previous administration.

“I don’t think they did anything untoward.

“A lot of other councils are in the same position.

“My understanding is the percentage we are getting back is quite a remarkable deal in the circumstances.”