Canterbury City Council has revealed it has £6million deposited in two collapsed Icelandic banks.

It has £4million in Heritable - the UK subsidiary of Landsbanki - and another £2million in Iceland's third largest bank, Glitnir, put under government control late last month.

Kent County Council has insisted services will not suffer after it revealed £50million is deposited with Landsbanki, Heritable and Glitnir.

It wants an urgent meeting with the chancellor, Alistair Darling, and has vowed to "fight to get every single penny back".

At least 20 UK councils have hundreds of millions of pounds invested in troubled Icelandic banks.