Councils may have to wait several months before they get back any of the money they put into Icelandic banks back, according to Kent County Council.

County Hall finance chiefs say they are increasingly optimistic KCC and other authorities in Kent will eventually get their cash back but admit they are unlikely to know for sure for some time.

It follows a visit to Iceland by finance officers from KCC and the London borough of Barnet for a series of meetings with the banks’ administrators.

KCC has £50million locked into three banks while Canterbury City Council has £6million and three other authorities have £1million each - Dover, Tonbridge and Malling and Sevenoaks. Kent Police is exposed to the tune of £11million.

Cllr Nick Chard (Con), KCC’s cabinet member for finance, described the meetings as positive. "It was the first step in quite a complex process which we expect to take several months. We are certainly on course to get most, if not nearly all, of the money back but it is early days. We have a dialogue with the banks but it is only the start of the process."

He revealed it was still not clear what the value of the banks’ remaining assets were in relation to their debts and as a result, a second trip would be made to Iceland in early December.

"It is not quite as clear as we would like it to be as to what the assets of Landsbanki and Glintir are, which is why we need further discussions and we will be sending out an officer for another visitor in December."

He insisted there would be no repercussions in the county council’s budget next year for either council tax bills or services if there were delays in retrieving the money.

"There will not be an immediate impact on either council tax bills or services, as we have got money in reserves," he said.

KCC has £18million deposited with the UK-based Heritable Bank and has previously indicated its confidence that this is likely to be returned. The remaining £32million is with Landsbanki and Glitnir.