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Credit Crunch Hits Nottingham

Notts IMC | 17.10.2008 17:11 | Globalisation | Social Struggles

It has emerged that Nottingham City Council had £42 million invested in the Icelandic banks which last week collapsed as a result of the "credit crunch," putting this money at risk. While Nottingham was not the only council to invested in these banks, Nottingham's investments are notable when the city's population is taken into account. One commentator estimated that "the possible loss in Nottingham could be £150.69 for every woman, man and child in the city." (By comparison, the per capita figure in Kent which had around £50 million invested, is £35.85.)

There are concerns that the city council may respond to the loss through job cuts, cutting services and/or increasing council tax. Nottingham and Mansfield Trades Council organised a demo in Market Square on Monday 13th October, demanding that Gordon Brown bail the council out, rather than leaving city residents to pay the cost of their rulers' poor investments.

Newswire: Lending to Icelandic Banks | £42 million missing in Iceland | Addressing the Financial Crisis is not a distraction from Peak Oil/Climate Change

Previous Features: Local Government Workers in Notts Join National Strike | Nottingham City Council: Mired in Corruption



Council workers have already been feeling the effects of the poor state of the economy. Earlier this year they went on strike against a pay offer from their employers which was substantially below inflation (which has only risen since). City residents will also be concerned about the threat of a council tax rise at a time when money is becoming increasingly tight.

Notts IMC

Comments

Hide the following 3 comments

Why selfish bailout?

17.10.2008 19:09

Why should tax payers in Leicester pay for Nottingham's loss of 42M? Asking for Gordon Brown to bailout Nottingham is just asking for other people in the UK to have their taxes spent to cover Nottingham's losses? Ask yourself, if Leicester lost the the money, would these demonstrators be out in the Market Square suggesting extra taxes in Nottingham to give to Leicester?

John

Government should support taxpayers, not bankers,who'll loan our£to us with$ %

19.10.2008 18:00

seems to be little conditions on the loans.Maybe The government should nationalise&cooperatise them , it'd be more democratic& step towards more universal democracy. Credit unions, Cooperative banks & mutual building societies are showing the way with less problems with toxic loans.
Meanwhile ex Fed reserve chief Alan Greenspans mates who encouraged the risks loan sharking like Chase Morgan are reaping billions.
Its no coincidence Mandelson is back in the cabinet, he is one of the corporate bankers BilderballG8ers chief agents in europe. They are playing with us to maintain power& deal with what they call the"crisis of democracy".
Mr Brown should keep as much control in more democratic hands as possible to maintain democracy many in labour want to regional & universal democracy, lets not fall for this artificial unecessary crisis.

Heres to cooperative economy, not a capitalist or command economy

 http://www.woccu.org/press/releases?id=1494
 http://www.australia.coop/artman2/uploads/1/abacusandtoxicloans.pdf
 http://www.opednews.com/articles/What-you-need-to-know-abou-by-Garland-Favorito-081003-654.html

Green syndicalist

Trades Council Demo

21.10.2008 14:10

Demanding that one part of the capitalist state props up another part is completely pathetic. At a time like this when bourgeois ideological hegemony is severely shaken we should be putting forward revolutionary slogans. The essentially reformist character of all the leftists in Britain is revealed by their failure to make an adequate response to the current financial crisis. It may not be the final crisis of capitalism but it could well be the final crisis of the likes of the SWP. Good.

Ross