Local Government: Bank Services

Mr. Cameron
To ask the Secretary of State for Communities and Local Government which local authorities' requests for permission to capitalise potential losses on investments held in Icelandic banks have been (a) granted and (b) rejected; and on what grounds such bids have been rejected.

Barbara Follett
As capitalisation allows local authorities to use capital resources to meet revenue pressures applications are considered against strict and readily available criteria. All Icelandic capitalisation applications were assessed against the exceptional financial difficulties criteria.

The list of authorities who applied for capitalisation under exceptional financial difficulties is available on the Department’s public website at:

http://www.communities.gov.uk/documents/localgovernment/xls/1451009.xls

All bids were carefully considered, and the grounds for acceptance or rejection were the criteria for exceptional financial difficulties which are contained within the guidance to authorities. This is available on the Department’s public website at:

http://www.communities.gov.uk/documents/localgovernment/pdf/1197739.pdf