John Healey claims it is still too early to know how much money councils will get back from Iceland's banks. Detailing the Government's response to the crisis, the local government minister pledged to ensure that deposits would be returned as quickly as possible. He said: ‘It is important to stress that this is not money that is lost, it is money that is at risk. Mr Healey said he expected the reorganisation of Northumberland to help deal with the financial fall-out. Uttlesford DC has been told by the CLG that an application for capitalisation would be considered, but no council has short-term cashflow problems. Wyre Forest DC, which has received a report on its finances from the LGA, promised business as usual, despite losing £9m, but has instigated a freeze of non-essential expenditure. ‘There are sufficient funds available so short-term borrowing will not be needed,' it said. CIPFA is set to publish advice for 2009-10 budgets but long term, Mr Healey warned: ‘It is not possible to say what the impact is on the budgets of affected authorities in the next financial year and beyond.'
