Budget 13: Osborne confirms FSA fines to go to military

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Chancellor George Osborne has confirmed money raised through FSA fines will be donated to the armed forces.

Speaking in his Budget announcement today, Osborne said money from regulatory fines including Libor will be used to fund combat stress help initiatives and Christmas boxes given to armed troops serving abroad for the next two years.

Osborne said: “Those in the financial sector who have demonstrated the very worst of values are paying to support those in the armed forces who are demonstrating the very best of values.”

In October, prime minister David Cameron said the Government will use £35m raised through FSA fines to support the armed forces.

Cameron said it is not fair that money goes back into the banking industry in the form of fee reductions.