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Uk Council's Icelandic Banks....oh Dear!


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HOLA441
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HOLA442
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HOLA443
Guy On R4 now blaming the ratings agencies.

Councils inevitably have large sums of money in bank accounts:

1) Pensions funds

2) Operational funds (ie, the difference in timing between collecting money and spending it) Kent have a 2.6 billion budget, so as a %age 50 million is a small exposure for them.

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HOLA444
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HOLA445
IMO, councils shouldn't be allowed to build up such large surpluses in the first place. If there's a surplus one year, it should be used to fund a reduction of the council's council tax the next year.

When I worked for the council March was always a really busy time because all the council's departments were pi$$ing money away in order to spend their surplus so that their budget wouldn't be cut the next financial year. There is a flaw to your plan.

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HOLA446

Rearrange to get a description of the people responsible for these ahem investments:

w7nkers incompetent Sympathy none I've shot be should

If I can work out that putting my money in these things was stupid, after spending 4 minutes googling and applying 1 minute of common sense and recent experience (BCCI etc), then what is the excuse of these suppossed profesionals?

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HOLA447
The councils with no surplus seem to manage okay.

All councils have reserves. It's the law. Even if they didn't, they'd build up money at the start of the year, since most people pay Council tax in 10 months or faster, and they pay wages etc over 12.

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HOLA449

What annoys me, is that these authorities employ "Strategic Financial Directors", "Chief Accountants", "Best Practice Directors" etc, etc, all on fat salaries with gold plated pensions. They are just as bad as the Bank CEO's, If they have made bad investments, they should be sacked. They should be put in the stocks outside the Town Hall.

If I was a small businessman with a meagre investment in these "ICY Frozen" banks, I would be demanding that if the Councils get compensated so should I.

I can see the riots this will cause on the streets when the inflated council tax bills arrive :(

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HOLA4410
What happens when there's a huge flood like in Gloucestershire, or a fire like at Buncefield, or a sudden doubling in the price of electricity the week after the budget is set, and there's no spare money to deal with it, then?

These aren't 'surpluses' they are funds used for the day to day management of the Council (paying teachers and staff) including business rates/tax income/govt grants. Do you suggest the bigger councils running schools and social care (with billion pound plus budgets) keep hundreds of millions of pounds in a safe in the town hall?

Of course its the Councils with surpluses (i.e. who have saved prudently in the good years unlike the UK govt) who are the ones we should be praising - its the Councils with smaller balances than they have exposure to Icelandic banks who we should be worried about! The figures for some councils (tiny districts and London boroughs) are scary!

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HOLA4411
These aren't 'surpluses' they are funds used for the day to day management of the Council (paying teachers and staff) including business rates/tax income/govt grants. Do you suggest the bigger councils running schools and social care (with billion pound plus budgets) keep hundreds of millions of pounds in a safe in the town hall?

Of course its the Councils with surpluses (i.e. who have saved prudently in the good years unlike the UK govt) who are the ones we should be praising - its the Councils with smaller balances than they have exposure to Icelandic banks who we should be worried about! The figures for some councils (tiny districts and London boroughs) are scary!

Sorry jdc - replied to the wrong post!

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