How did Icelands economic collapse affect Britain?
In the UK the Icelandic collapse affected everything from building societies and high street retail to Premiership football. Around 300,000 British savers lost a combined total of 4.5billion because two of Iceland’s big three banks – Kaupthing and Landsbanki – offered online accounts such as Icesave, which promised high interest rates that attracted millions in savings from the UK. But institutions as well as individuals were affected. Chelsea Building Society lost 50 million and they were just one of the 13 building societies to have run up combined losses of 195 million with Landsbanki. The collapse also had a direct result on people’s lives via council tax rises. A total of 953million was deposited by English local authorities in the Icelandic banks, which were also attracted by the high interest rates. Reigate and Banstead Council in Surrey invested 15.5million while Kent County Council had nearly 50million in Iceland. Each 100million lost was the equivalent of 7 on a Band D counci
