A council moved a step closer to recouping a £6.5m investment which was written off after the collapse of the Icelandic banks.

Cherwell District Council was one of scores of local authorities and police authorities which had cash invested in bank Glitnir.

Last year the council was chosen as a test case for review by an Icelandic court after the bank refused to give it preferential status.

Yesterday the court found in favour of the council.

James Macnamara, Cherwell’s executive member for resources and communications, said: “The result means we should see the lion’s share of our investment returned along with a portion of the interest.”