Experts on way to rescue £9m

Government experts are to be sent to help Wyre Forest District Council, which has £9 million at risk in failing banks.

Wyre Forest is one of first councils around the country to be offered urgent advice over the crisis.

However the council – which is still waiting to find out what kind of help will be provided – says what it really needs are guarantees that its money will be recovered.

Following the international economic turmoil of last week, it has been revealed that 116 local authorities with deposits of £858.3m are potentially affected. Wyre Forest has £9m invested in Landsbanki, Heritable and Kauthing, Singer and Freidlander.

Leader of Wyre Forest District Council Councillor Joh?n Campion said although the help was appreciated he would prefer a guarantee from the Government that the investments would be recovered.

He said: "The Government has established a 'rapid response' unit to assist councils by providing external financial experts.

"While we are always receptive to any advice we don't want someone to come in and tell us how to manage our budget.

"We want a guarantee from the Government that the money will be returned.

"Private investors have been told their investments are safe but not councils.

"If we don't get some or all of the money back we would like the Government to look at topping up the shortfall.

"It does seem as though the Government is struggling to understand the issues of local government."