An urgent meeting has been held to discuss Wyre Forest District Council’s £9million investment in failing Icelandic banks.

Officers called the emergency briefing last night to inform party leaders about the difficult financial situation.

Their meeting comes as British government officials were today heading for Iceland for urgent talks after the collapse of the country’s banking sector.

Leader of the Health Concern opposition party Councillor Howard Martin said today the council was watching and waiting as it did not know whether the money could be retrieved.

But he said it was too early to talk about how the financial position could affect council tax or other front-line services.

The investment is in three Icelandic banks which are in trouble.

Landsbanki and its internet bank Icesave have been placed in receivership and nationalised.

Iceserve has prevented people taking money out, including large investments from councils.

The council has not yet said what the true implications will be if the money is lost.

Council leader John Campion said in a statement: “The council, through the Local Government Association is seeking urgent reassurance from the Chancellor that he will protect local authority deposits held in troubled Icelandic Banks.”