Call to review County Council’s treasury advisors

The Liberal Democrats have today called for the county council to review its
arrangements with Butlers, the company which advised the council on credit
ratings for its treasury management operations.

Chris White, Liberal Democrat Group Leader, said: ‘It is quite disturbing
that one third of the councils advised by Butlers lost money in Iceland. The
norm was just 20%.

‘If a supplier has a failure rate this high then it is only reasonable to
query whether there should be continued use.’

The company has attracted media attention not just because of its recent
advice record but also because it is run by the Treasurer of the
Conservative Party.

Notes to editors

The Independent’s research shows that 35 per cent of councils advised by
Butlers lost money in Iceland, compared with one in five that employed other
advisers. The investments of councils advised by Sector Treasury Services
accounted for £313m of frozen council funds. About half of all UK councils
use the services of the company, which is part of the Capita group.

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