WORCESTERSHIRE district councils with £10.5 million tied up in the Icelandic banking crisis have been promised Government help if needed.

Wyre Forest District Council has £9 million invested with three Icelandic banks and Wychavon District Council has £1.5 million in a two-year-fixed deposit with Landsbanki, now in receivership.

Government ministers and the Local Government Association meeting yesterday assured local authorities and taxpayers they wanted the best, most rapid resolution to the crisis.

John Campion, Wyre Forest district council leader, said he had been assured financial experts would be available to advise the district council.

He added: “The Government has established a rapid response unit to assist councils.

“We understand Wyre Forest will be one of the first to receive advice if required.”

Coun Campion reassured taxpayers there was “no immediate concern over services” in the current budget.

He went on to say the district council would work with the Government and the Local Government Association to recover its money.

Vic Allison, Wychavon’s deputy manager, confirmed council tax and front line services would not be affected because of the Icelandic banking crisis.

He said: “We’re delighted the Local Government Association have got the bull by the horns to tackle the issue.”

Mr Allison confirmed the local authority was not among13 receiving Government help but said the district council had to plan for the “worst case scenario” of losing its entire investment.

He explained: “In that event it would take our longer term contingency funds to a level we would be worried about.”

Mr Allison added the district council had tightened up its investment rules in February.