BRITAIN'S troops are to benefit from the millions of pounds collected from fines imposed in the wake of the Libor-rigging banking scandal.
George Osborne said a proportion of the £300 million windfall would go towards boxes of Christmas gifts for troops serving abroad from now until 2014.
He said it would also pay for help for veterans with mental health issues through financial support given to the charity Combat Stress.
The Chancellor said: "Further awards from the Libor banking fines have gone to good military causes, with money for Combat Stress to help veterans with mental health issues and funds for Christmas boxes for all our troops on operations this year and next.
"Those who have paid fines in our financial sector because they demonstrated the very worst values are paying to support those in our armed forces who demonstrate the very best of British values."
Mr Osborne made the statement yesterday, following up a promise he made last year to use money from Financial Service Authority fines to support Britain's troops.
In October, the Government said £35m raised through FSA fines would be used support the armed forces through the Armed Forces Covenant Reference Group after consultation with the government, services families and charities.
It was used to help with healthcare, housing, education and support after service.
A total of £300m in fines have been levied by the FSA since April last year for breaches of its rules, with the majority of the proceeds expected to be handed to the Treasury apart from £40m to cover the cost of bringing the prosecutions.
The armed forces were given a second boost when it was also announced that servicemen and women will not be subject to the freeze in pay rises above 1% being imposed on other public sector workers.
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