There have been calls for an
audit of the full extent of the money losses suffered by councils, hospitals and universities after the collapse of the Icelandic banking system, reports Bloomberg news.
Although individual savers have been promised they will not lose money, the same guarantee does not apply to organisations with money held in Icelandic bank accounts.
Vince Cable, Liberal Democrat finance spokesman, said in an interview: "There could be all kinds of skeletons in this closet.
"We need to know how much is involved."
The Conservative Party has said that councils across Britain may have had as much as £1 billion saved in Iceland.
Forty-five local councils have Icelandic accounts and it was revealed yesterday that the Metropolitan police had £30 million in accounts on the island.
This week Gordon Brown invoked little-used anti-terrorism laws to freeze all UK-held assets of the Icelandic bank Landsbanki, a strategy that was greeted with dismay by the country's prime minister.
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