Vince Cable

Richmond Council made a conscious decision, several months ago, not to entrust council taxpayers' money to Icelandic banks and has thereby averted the disaster which has overcome numerous councils, police and health authorities, universities, charitable bodies and others.

Vincent Cable MP, who was the first person to raise in Parliament the issue of London councils and Icelandic banks, said that "other councils - like Westminster, Barnet and Haringey - are in terrible trouble and the Government is unlikely to bail them out. Treasury guidance to councils was clear that they must give priority to produce over yield, yet some didn't pay attention. I hope those people who attack Richmond Council will take note that it was careful with local taxpayers' money and has, as a consequence, saved millions of pounds."