Northumberland taxpayers’ cash now invested in the UK

Mar 26 2009 by William Green, The Journal

COUNCIL chiefs in Northumberland are no longer investing taxpayers’ money overseas in the wake of the Icelandic banking collapse, The Journal can reveal.

The news came as a report from the Audit Commission spending watchdog blasted failings by local authorities in managing investments and heeding warnings about Iceland going back three years.

More than £43m of North taxpayers’ money invested in Icelandic banks could be at risk, including £23m deposited by Northumberland County Council – the eighth highest amount in terms of local authorities.

Jeff Reid, Liberal Democrat leader of Northumberland County Council, said investments made before September 2008 were not the responsibility of his administration as it was not in charge at the time. He added £1m deposited in early September was the least at risk and expressed confidence money would eventually be returned. “We actually reviewed all the circumstances regarding the investments that were made and we have changed our investment policy in accordance with what the investigation turned up,” said Mr Reid.

“All of Northumberland’s money is now invested in UK institutions.”