Stashed Cash

For months now Norfolk County Council’s Labour group has been urging the freeing up of the Tory war chest to provide better services and facilities to the current tax payers rather than stuffing millions in the bank. But alas their prudence did not extend to heed the warnings and excesses of an under regulated capitalist system that its National leaders had supported in the past particularly under their revered ex-leader Mrs Thatcher.

County Hall

Labour has for a number of years consistently urged the Tories to invest more on prevention services for both the young and old. This lack of investment means that many vulnerable people, often those ending up in care in expensive provision, have not been served well and neither have the tax payers who support them. Is it then ironic that the Tories, so wedded to saving cash rather than investing to save and at the same time improving the lot of Norfolk’s most vulnerable, are in the headlines as one of the worst hit by the Icelandic banking disaster.

Today a statement to Norfolk County Council’s Cabinet by the Conservative Leader seems a little unfitting in this context. A lot about money – little about people.

“I want to take the opportunity afforded by Cabinet this morning to provide further information on the current financial situation in relation to the County Councils lending to Icelandic banks.

“The County Council currently has some £300m of cash invested with banks and financial institutions which meet the Council’s required high credit rating investment criteria.

“This cash represents money received in advance of it being required to meet the cost of our services and the capital programme in 2008/09.  In total this year we expect to spend £1.7bn. It also represents the cash required to support the Council’s reserves and provisions.

“Investment of surplus cash in this way is standard practice for local authorities.  For Norfolk it has generated some £39m of interest over the past 3 years and will generate some £15m in the current year. This income has been used to hold down levels of Council Tax and to improve our services.

“£32.5m of the Council’s investments is with 3 Icelandic Banks which have now been taken into receivership by the Icelandic Government and their accounts frozen.”

Monday October 13th

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