The FSC has been extended to small local authorities (SLA's) which are defined as local authorities with "an annual budget of upto 500,000 Euros".
The regulations do not specify whether the term "Budget" refers to income or expenditure. NALC Financial Adviser, Derek Kemp suggests the only prudent course is to assume that both income and expenditure need to be under the 500,000 Euros threshold.
Unhelpfully the threshold is quoted in Euros with a reference to the exchange rate on 3rd July. By my calculation 500,000 Euros = £356,550 on that date.
Under the scheme small local authorities are protected for deposits up to £85,000 (reducing to £75,000 from 1st January 2016) with any UK bank, building society and credit union and some other overseas firms and UK branches of European Economic Area crdeit institutions.
Banks will ask councils for their confirmation of their status as an SLA which will probably take the form of confirmation that the budget is under 500,000 Euros.
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