Chorley’s Council’s finance chief has beaten off a vote of no-confidence in him at an extraordinary meeting called after it was revealed the authority had £2m invested in the ailing Icelandic bank Landsbanki.

Opposition Labour councillors called the meeting on Friday after they claimed ‘investment strategy has shifted without reference to council.’

At the meeting the Labour group proposed a vote of no confidence in Councillor Alan Cullens, the executive member for resources, which was easily defeated by the ruling Conservative group.

The Labour members then abstained from a vote of confidence in the council's officers, which was carried.

Labour group leader, councillor Dennis Edgerley said: “The decision to invest on Landsbanki on September 9 is unacceptable.

“You cannot gamble with taxpayers money yet this is exactly what Chorley Council has done.

“The Conservative administration have failed the people of Chorley and we are demanding answers from them in order to justify their position.”

Councillor Cullens he was pleased to have won the support of the council and that Friday's meeting gave a chance to get a number of facts over to the council.

Talks between Chorley Council and the Local Government Association about how to get the money is returned are continuing.