News from Westminster Labour

Westminster Council lost £1m in Icelandic Bank investment interest

Westminster City Council has lost £1 million in interest because of the £16.25 million invested by the Council in now-failed Icelandic Banks, according to information gained by Labour Councillors. In response to an enquiry from Labour Councillors, the Director of Finance Barbara Moorhouse told Councillors:

“The amount of interest lost, calculated assuming all Icelandic deposits fully matured, would have been £1.0m.”

Councillor Paul Dimoldenberg, Leader of the Labour Group said: “Not only has the Council put at risk millions of pounds of taxpayers’ money by investing in Icelandic banks, much of which will be lost for all time, but the Council has also lost £1 million of interest. If the Council had been more prudent with public money and invested in safer investments then the interest would have been paid to the Council without a problem.

“For the past two years the Conservatives have been in denial about the extent of the financial problems caused by the Council’s foolish Icelandic investments. The news of the £1 million loss of interest shows how damaging and incompetent these Icelandic investments have been and how unfit the Conservatives are to run the Council.”

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