UK Councils Risk Money in Icelandic Banks

The latest twist in the banking crisis is that UK local government has hundreds of millions of pounds at risk. This is money on deposit with a number of Iceland's banks. As it stands, these deposits are not being guaranteed by the UK Treasury. The Treasury has undertaken to guarantee private deposits and plans to sue the Icelandic government for losses. According to a report in today's Daily Telegraph:

Based on information from Conservative councillors, the Tories said they had identified at least £160 million of council funds exposed in Landsbanki or Heritable.

One authority alone - Kent County Council - has £50 million deposited in Landsbanki and Heritable, as well as Glitnir Bank.

I am located in Kent and a Kent council tax payer. If the money is never recovered each Kent council tax payer stands to lose £100 each!