BEXLEY Council has moved to reassure council taxpayers none of the borough’s cash is tied up in Icelandic banks nor any of its UK subsidiaries.

Neighbouring Bromley and Sevenoaks councils both deposited money with Landsbanki and Glitnir, along with the Met Police and Transport for London.

A spokesman for Bexley said: “None of these banks met the council’s guidelines for deposits, which continue to concentrate on highly rated UK and EU banks.”

He said the council had revised its investment guidelines following the collapse of Northern Rock, and kept them under review.

The council uses interest earned from its investments to help meet the cost of council services.