On 15 July 2008, the Council invested, in accordance with the Council’s approved Treasury Management Strategy, £2m with the Heritable Bank. At this date, the bank was rated as F1 for short term ratings by Fitch, which indicates the strongest capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Heritable Bank was on the list of approved counterparties as prepared for the Council by its treasury management advisors. The treasury management strategy approves investment of a maximum of £3m with these counterparties. The investment was for 3 months and is due to mature on 15 October 2008.

On 7 October 2008, the High Court made an administration order in respect of Heritable Bank. The retail deposit business has been transferred to ING Direct, a wholly owned subsidiary of ING Group. However, at this point in time, the wholesale deposit business (including the Council’s investment) remains under the Administration order.

The Council is in a similar position to a significant number of other local authorities in the country, and will work with the Local Government Association and local MPs to lobby Government to guarantee this investment so as to minimise the impact on Council tax payers.

For more information, please contact Cllr Barry Stone, Deputy Leader Great Yarmouth Borough Council. Mobile 07760 166344.