Joint Statement by Government and the Local Government Association

Published	15 October 2008

Statement issued jointly by Government and the LGA following their follow up meeting to discuss councils' investments in Icelandic banks.

There has been positive joint working between the Government and the LGA in the past week.

The Government continues to work with the Icelandic authorities to ensure a fair deal for all UK depositors.

The Government and the LGA will continue to work with the Administrators and the Icelandic Authorities to get the best and most rapid resolution of the situation relating to Icelandic banks and the £858 million that the LGA's survey has highlighted.

13 Councils have said that they may face short term difficulties but we have no reason to think that wages will not be paid or that services could be at risk at these Authorities.

Financial experts will be working with three of these councils from today and will report interim findings shortly.

In another 10 councils, specialists are establishing contact, fact finding and offering support and will report back to the Government and the LGA.

We will stay in touch with these councils and experts, and the Government and the LGA stand ready to provide additional expertise if necessary.