There have been six Scottish Councils revealed who may have lost money in failed Icelandic banks after control of Landsbanki was seized by the Icelandic government yesterday.
A £120million school refurbishment project In Aberdeen may be the worst hit as the funds for this were in Landsbanki*. South Lanarkshire had £7.5m invested there or in its its UK subsidiary Heritable, South Ayrshire had a further £5m, Moray £2m, and North Ayrshire an undisclosed amount. Perth and Kinross had already lost £1m which it had deposited with Glitnir.
With more of these councils being revealed all across the country and the size of the amounts there may well be futher calls on the Chancellor to come to the aid of local authorities who have lost out in some way.
*UPDATE Cllr Mark McDonald Deputy SNP group leader on Aberdeen City Council has posted clarification of their position in the comments. I'm only too pleased to update this report accordingly (as the BBC were not clear). Aberdeen City Council had not investing with Landsbanki but their private sector partners NYOP who were carrying out the 3Rs refurbishment scheme mentioned were borrowing the money from that source to carry out the work. Therefore the Council Tax payers of Aberdeen have not been affected directly, though the worry is who or when will complete this work on the schools .