Somerset councils say Northern Rock money is safe

TWO major councils in Somerset have money invested with troubled banking giant Northern Rock, but they are assuring taxpayers that their money is not at risk. Somerset County Council and Sedgemoor District Council, the authorities responsible for the Ched

TWO major councils in Somerset have money invested with troubled banking giant Northern Rock, but they are assuring taxpayers that their money is not at risk.

Somerset County Council and Sedgemoor District Council, the authorities responsible for the Cheddar, Axbridge and Wedmore areas, both have money in the bank.

Newcastle-based Northern Rock hit the headlines earlier this month when shares plummeted by 40 per cent, inciting many worried customers to withdraw their savings.

A spokesman for Somerset County Council said: “The council has a cash deposit with Northern Rock but this is treasury management cash and neither the council or the pension fund holds shares in the bank. We have no reason to suspect that it will not return our investment with the agreed interest when it falls due today.”


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A spokesman for Sedgemoor District Council was also eager to reassure residents, even though the authority has £1million in the bank.

Finance spokesman Alison Griffin said: “We have a portfolio of investments and Northern Rock is one of them. The Government has given assurances and the council is not concerned about the money it has in the bank.

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“However, we will not be putting any more cash in that direction in the future but we do know that anything with Northern Rock now is protected.”

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