"Mark Horsfield, director of Arlingclose, an adviser to the public sector, said he had long been telling the 45 councils on the firm’s books of the dangers: “These banks have been getting steadily worse for quite a long time.”
Arlingclose advises over 10% of local councils. Surely Cheshire County Council advisers knew about the problem! No doubt the poor old taxpayer will have to pick up the bill for council mismanagement yet again.
"Campaign director at the TaxPayers' Alliance, Mark Wallace, said: "People will be shocked that the councils had this money stashed away in the first place.
Every year we hear that councils don't have enough money and need to raise taxes but it seems they have had sufficient excess tax to salt tens of millions of pounds away.
The fact that they have invested this money and seem to have lost it is even more shocking and is sadly yet another reminder of the poor financial management in local councils.
In short, they should not have stashed this money in the first place and they simply weren't equipped to try to be clever in the markets with it.
It's an absolute disgrace. If the councils can't get their money back, the people who took these excesses should seriously consider their positions as councillors."