To ask the Secretary of State for Communities and Local Government what plans she has to issue guidance to local authorities with funds frozen in Icelandic banks on the appropriate level of any write-off of affected funds. (232229)

The Chartered Institute of Public Finance and Accountancy (CIPFA) will be publishing professional advice to local authorities about the accounting aspects of the current situation and the factors they need to take into account in setting their budgets for 2009-10.

To ask the Secretary of State for Communities and Local Government what guidance her Department issued to councils which signified in September 2008 their intention to (a) place deposits in overseas banks and (b) invest in overseas funds. (233054)

It is a matter for local authorities to determine their own investment policies, within Government guidance to local authorities on investments, which was issued in 2004 following the 2003 Local Government Act. This emphasises that priority should be given to the security and liquidity of invested funds. The guidance is available at:

http://www.local.communities.gov.uk/finance/capital/data/guidlocal.pdf