Scotland is demanding reassurance from the UK its councils will receive the same protection as its southern counterparts following the collapse of the Icelandic banking system. Finance minister, John Swinney, said: ‘The Scottish Government stands ready to work co-operatively with Scottish councils whose investments in Icelandic banks may be in doubt, and I will take forward discussions with affected Scottish local authorities directly with the Treasury.' COSLA president, Pat Watters, said: ‘We are determined Scottish local government will be represented equally at all discussions with the Treasury, while seeking a solution to problems caused by the Icelandic banking crisis.' Welsh councils are also fighting to save millions of pounds of cash frozen in failed Icelandic banks. Neath Port Talbot CBC has the most to lose, with £20m invested in two Icelandic banks. At least eight Welsh councils are now trying to recover their funds. Leader of the WLGA, John Davies, said: ‘It would be wrong to apportion blame. These investments were done with sound advice behind them.' Council leaders in Wales have asked the Welsh Assembly to allow them to keep the £38m efficiency savings expected this year in the light of the continuing financial downturn. WLGA finance spokesman, Cllr Rodney Berman, warned council tax would need to rise by 4% to meet the savings, if their bid was refused.
