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Page last updated at 06:50 GMT, Thursday, 9 October 2008 07:50 UK

Councils 'could cut services'

Local authority leaders are seeking an urgent meeting with the chancellor after it emerged at least 20 councils in England and Wales have cash in troubled Icelandic banks.

Shadow local government secretary Eric Pickles said that if the money is lost, it could lead to cuts in services or rises in council tax.

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