Audit Commission slams Reigate & Banstead Council

6.20.00pm GMT Thu 26th Mar 2009

On March 26th the Audit Commission published its report on English Local Authorites investments in Icelandic banks. The commission was critical of those Local Authorities that continued to deposit money in Icelandic banks after the credit rating was downgraded. Reigate and Banstead Borough Council is one of 127 local authorities to have invested council tax payers money in the Icelandic banks. The Council invested £15.5M of tax payers money in the Icelandic banks and there is little prospect of getting this money back within the next 10 years.

Jane Kulka, Prospective Westminster candidate for Reigate commented, "One of the astonishing facts in the report is Reigate and Banstead's level of investment in these banks. At 26.3% of gross expenditure, that is the highest percentage listed on the Audit commissions report. Questions need to be asked of the current administration who took a very high risk with our money. The Council needs to consider the Audit Commissions conclusions very carefully and ensure they have robust risk assessments in its treasury management policies."