MPs investigate local authority investments
Investments by local UK authorities are to be investigated by MPs on the local government committee following the freeze of many of their accounts in Iceland.
The inquiry will examine the existing arrangements for local authority’s treasury management, particularly on their investment strategies and their effects on local authorities.
Potential changes in the framework of local government reserves will be looked into, as well as whether local authority money should be invested in low-risk, low-return government stock.
The role of the central government in terms of providing advice and guidance will be examined.
The MPs are also expected to investigate whether Westminster should protect local authority’s investments, raising fundamental questions over the relationship between central and local government.
