Council taxes to rise for years in wake of Icelandic bank collapse

Householders were threatened with crisis council tax hikes and the prospect of cuts in policing and fire cover as the devastating impact of the Icelandic banking collapse was revealed. At least £1billion of public money has been lost in a disaster that has swept up more than a third of town halls and police authorities. Ministers promised help for the worst-hit local authorities where severe cash shortfalls mean a risk of punishing council tax increases or deep cuts to services such as home help for the elderly. Icelandic nightmare: More than 70 authorities have placed cash in banks including Kaupthing The impact on council tax payers - who have already seen average bills more than double to £1,145 over the past decade - and taxpayers is likely to be long-term. Tony Travers of the London School of Economics said: 'Something... [read full story]