Caerphilly County Borough Council is to get at least £12.5 million out of £15 million it invested in the collapsed Icelandic banks.
In a further boost to the council’s budget woes, the Welsh Assembly Government is also giving more cash to the local authority through its settlement.
Leader of the council Lindsay Whittle said: “The early analysis shows the settlement figure gives us an additional 2.3% which, with all the inescapable pressures on our budget, will, we believe allow us to continue to deliver our core services.
“It is all the more pleasing when you consider the situation, which occurred this time last year when the Icelandic banks collapsed. Thankfully we have received information from the Icelandic Banks administrator indicating he thinks we can expect to receive 80% of our £15 million back.
“This of course is a great relief and I am sure our residents will be pleased to hear the news that we will get at least £12.5 million back. We can move forward knowing that the Icelandic bank investments issue will have little effect on our budget and provision of services in future years.”
Commenting further on the Welsh Assembly Government settlement Cllr Whittle warned: “ The devil is always in the detail, and we won’t receive this until later this month. There is a prediction of a possible cut in grant funds. This may have an impact on some of our front-line community initiatives.”