Cornwall County Council has £5 million in Landsbanki out of its total investment portfolio of £360 million. Coun Brian Higman, responsible for Corporate Support, said: "Whatever happens, this will not directly affect the services we currently provide to the people of Cornwall".

Dorset County Council has £28.1 million deposited in the form of temporary loans to Landsbanki and Heritable. There would be "budget implications if this money is not recovered".

Dorset Police Authority has £7 million deposits in temporary loans to Landsbanki and Heritable. The money was due to be repaid over the next three months.

Dorset Fire and Rescue Service has £1 million invested in Landsbanki and Heritable.

Exeter City Council has £3 million deposited with Landsbanki and £2 million on deposit with Glitnir. Council chief executive Philip Bostock said: "We have followed Government advice and best practice in the way we invest our funds and clearly many authorities across the country find themselves in the same financial situation."

Mid Devon District Council has £1.1 million in Heritable Bank, part of the Landsbanki group. Chief executive Gerald Hirsch said the sum was less than 10 per cent of the total deposits. "This situation will not affect the services we deliver to our council taxpayers nor our ability to meet our payroll commitments in full."

North Somerset Council said it had £3m in Landsbanki.

Plymouth City Council has £13 million tied up in 10 separate transactions with Heritable Bank, Landsbanki Island and Glitnir. Some £9 million of this investment is due to mature in October 2008. The most recent investment was made in May this year. Coun Ian Bowyer, Cabinet member for budget and asset management, said: "It is too early to say what impact this might have and what support packages may be offered by either the Icelandic or UK governments."

Restormel Borough Council has £4 million invested with Landsbanki but officials insist the rest of its £21 million in investments are other banks and building societies all of which are British-owned and therefore now protected by Government guarantees. "Services to the public will not be affected," said a spokesman.

Somerset County Council has £25 million invested in three affected Icelandic banks, which represents 2.5 per cent of the authority's portfolio. A spokesman said: "We are supporting the LGA 100 per cent to get the same assurances as individual investors."

South Hams District Council has £1.25m with the Heritable Bank, a UK-registered bank, which is part of the Icelandic Landsbanki group. Mark Seymour, the authority's strategic director of resources, said: "This situation will not affect the services we deliver to taxpayers."