9 October 2008: Global financial fallout reaches Lewes District Council

Media: 1058

Lewes District Council is one of many councils and public bodies with an investment in the Landsbanki Island UK bank. It has supported the move by the Local Government Association for urgent discussions with the Government. The Council places deposits taking account of Fitch and Moody credited rated institutions and has a £1m term deposit yet to mature. Investment interest supports the Council’s budget  which comes from a wide spread of investments designed to minimise the impact of an event such as this.

The Leader of Lewes District Council, Councillor Ann De Vecchi said “I agree with the Local Government Association comment that it does not expect "significant financial problems" in the short term as councils put money in a wide range of institutions and vital frontline services should not be affected, and that is the position at Lewes. The current position remains fluid and may well change. The way we use investment interest and structure the Councils finances means we can deal with this situation without it affecting council tax levels. We firmly believe the situation is a consequence of the current global market instability and that the Government should assist the many councils affected. At the end of the day bringing stability to the world’s financial institutions is essential for everyone and we believe that any support should come from the Government.”

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