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.
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.