COUNCILLORS have breathed a sigh of relief after successfully recovering all of the £9million West Oxfordshire District Council had placed in Icelandic banks.

Many local authorities, charities and businesses invested in the Icelandic banking sector during the early 2000s but it disastrously collapsed in 2008 when the global financial crisis took hold.

Since then, councils have followed a legal process to recover the full balance of their investment.

Councillor Toby Morris, cabinet member for finance said: "It is good news for West Oxfordshire that all the money has now been returned in full.

"Such a large sum is an important part of our investment portfolio, generating interest year on year which helps maintain the District Council services valued by residents. It also helps keep our District Council Tax low and, once again this year, we are the second lowest charging authority in England.

"Recovering the money involved long protracted negotiations. The majority was repaid in 2012 and the remaining balanced received at the end of June this year."

West Oxfordshire's £9m was originally held at three banks - Landsbanki, Glitnir and Kaupthing, Singer & Friedlander (KSF).

Including the interest added, the council has now received nearly £9.1m and there is a little more to come.

One of the banks, KSF, was based in London and there is still an amount outstanding as this bank's administrators wind it up.