The councils including Oxfordshire County Council, Cherwell District Council and West Oxfordshire District Council, are among at least 40 local authorities across the country that have been caught up in the current Icelandic banking crisis and are waiting to hear when their investments in three Icelandic banks will be re-paid.

MP for West Oxfordshire and leader of the opposition David Cameron, spoke to the Banbury Guardian this morning.

He said: "It is very important the chancellor of the Exchequer has urgent talks with the councils affected and we try to find a way through what is a difficult problem."

The breakdown of the funds invested in each council is:

Cherwell District Council £6.5m

Oxfordshire County Council £5.0m

Oxford City Council £4.5m

South Oxfordshire District Council £2.5m

Vale of White Horse District Council £1.0m

West Oxfordshire District Council £9.0m

Cllr Margaret Eaton, chairman of the Local Government Association, said: "We are today seeking an assurance from the chancellor that councils' assets will be protected in the same way as personal assets. Town halls invested in Landsbanki as a reputable bank with a solid credit rating.

"In the short term, these councils are confident that they will have sufficient funds to tide them over for a considerable period of time.

"Whilst this may affect some councils financially, we do not expect it to have any impact on local services.

"Councils' experience of ensuring stability in a financial crisis will mean that they will keep vital frontline services running through thick and thin and this situation is no different."

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