The firm that advised Kent County Council to invest £50million in Icelandic banks has shunned a meeting to answer councillors' questions.

Representatives of the financial consultancy Butlers had been asked to attend a cross-party watchdog committee meeting.

They had been expected to be quizzed about the advice they gave the county council.

The company had pledged to do so after the county council published its own independent report into events surrounding the £50million that KCC has locked into three Icelandic banks.

Butlers has now told the authority it is concerned by what the council is trying to achieve at Wednesday's meeting. However, it has agreed to answer written questions submitted by councillors.

Cllr Mike Eddy (Lab), the chairman of the council’s policy scrutiny committee, said he was disappointed by the company’s decision to stay away.

"I am disappointed they are not able to come. We have agreed that we will submit written questions and we will get answers to those questions. From their perspective, they may regard it as a waste of time but we do need to consider where we may need to improve our performance."

Butlers has told KCC that it was concerned about what the meeting was trying to achieve. In a letter to the council, it said: "We have concerns as to what this meeting is trying to achieve and feel it may be outside of our remit with the council."

An independent report commissioned by KCC into the £50million it has tied up in Icelandic banks revealed the council made a £3million deposit in one of the banks one day after being advised that it should not do so. However, the report said other investments made by KCC were made in line with the advice from Butlers.