Some if not all of the £6million invested in failed Icelandic banks by the city council will be recovered according to council boss Colin Carmichael.

And he said the ambitious multi-million pound plans for the Marlowe Theatre and Beaney Institute remain on track.

Mr Carmichael said that council services would run as normal and that there were no plans for a council tax rise at this stage.

“Projects including the Marlowe and the Beaney are going ahead as planned.

“From the information I have at this stage I am confident that some, if not all, of our money will be recovered eventually,” he said.

“There is no panic and I want to reassure people that there is no change to our services.”

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Mr Carmichael said he had “personally seen” the rest of the council’s investments, some £45million this year, and was happy it was safe.

Local Government Association officials have met ministers to continue the fight to recoup £858m invested by 116 UK councils.

Kent County Council had £50m invested in Icelandic banks.

•Where did it all go wrong? See this week’s Kenish Gazette for some answers from political editor Paul Francis.