Investment uncertainty stalls budget

The drafting of budget proposals by Wyre Forest District Council has been delayed because of the credit crunch and £9 million of the authority's money being trapped in Icelandic bank accounts.

Council leader councillor John Campion told cabinet members that they would normally be considering the first stage of budget proposals but because of "unprecedented economic times, lack of confidence in financial markets and investments in Icelandic accounts they were not in a position to do this".

He said things would be delayed until January but said members would have the same opportunities to scrutinise the budget proposals.

Councillor Campion added: "We need every piece of information before we make a decision that will affect our residents."

Council official David Buckland gave a treasury update to members and said meetings should take place on Monday about the Icelandic banks situation.

He said that the council had always checked credit ratings and only chosen those organisations with the highest ones before making investments.

Mr Buckland added: "In the event as a result of unprecedented global pressure four banks have either been placed into administration or receivership.

"It is generally accepted that these events could not have been reasonably foreseen."