Councils with cash frozen in Icelandic banks will not have to raise council tax to cover interim costs, under new rules published by the Government. Local government minister, John Healey, this week laid new regulations before Parliament, delaying a requirement that councils must reflect the cost of frozen Icelandic assets in their annual revenue accounts. Under Mr Healey's revised rules, councils will not have to present the cost of potential losses until 2011/12. The move will help local authorities balance their books. Figures published this week revealed 125 local authorities in England had outstanding deposits worth £923m. It followed the Icelandic Government's decision to call off its legal challenge of the UK's use of anti-terrorism laws to freeze assets.
