Westminster City Council has been accused of losing £1m in interest through its investments in Icelandic banks. Labour group leader, Cllr Paul Dimoldenberg, said the Conservative-run council should have been more prudent with the money and invested in safer places. But Cllr Melvyn Caplan, cabinet member for finance and resources, said: ‘The council's exposure in Iceland does not come anywhere near the £71m worth of interest we generated on behalf of the taxpayer through our sound financial investments over the preceding four years.'