OXFORDSHIRE councils which held money with Icelandic banks are receiving repayments.

The county and four district councils had more than £28m invested in Icelandic banks when they crashed in 2008.

Glitnir, which held deposits from West Oxfordshire, Oxford City and Cherwell, was due to start repayments yesterday, including £6.5m owed to Cherwell District Council.

Ken Atack, Cherwell lead member for financial management, said: “It has been a long, hard slog to claw back this money.

“I have to congratulate everyone involved in making sure this money is returned to its rightful owners, the taxpayers of this district.”

Two other banks, Landsbanki and Kaupthing, have also made repayments this month.

When the banks crashed, West Oxfordshire District Council had £9m in Icelandic deposits, Cherwell District £6.5m, Oxfordshire County Council £5m, Oxford City £4.5m, South Oxfordshire District Council £2.5m and Vale of White Horse District Council £1m.

Oxford City Council had £1.5m with Glitnir, but yesterday would not confirm if it had received any repayments. West Oxfordshire District Council has received £4.2m from Glitnir and £6.1m overall, South Oxfordshire £1.7m and Vale of the White Horse around £292,000.

Oxfordshire County Council has received £1.4m from Landsbanki so far. Council spokesman Paul Smith said it did not know when further payments were set to be made.

Thames Valley Police Authority is also believed to have received money back but was yesterday unavailable for comment.