The Government has revealed where it will spend £70m worth of bank fines over the next five years.
Historically, excesses in FCA fine revenue were directed back to firms to reduce regulatory costs. But since April 2012 the fines have been passed directly to the Treasury instead.
In 2014/15, FCA fines totalled £1.42bn, of which £1.36bn was paid to the Treasury.
Last month Money Marketing revealed the Treasury was unable to account specifically for how the fine money has been spent, other than to say all money from Libor fines is allocated to military charities, and money from Forex fines is earmarked for NHS spending.
Today’s Budget says: “The Government has committed nearly £70m of banking fines over the next five years to support military charities and other good causes.”
The biggest allocation of funding is £50m to increase the number of cadet units in state schools to 500 by 2020.
Other major spends include £5m to support ex-service men and women from the Commonwealth, £3m to provide a rehabilitation centre for the Special Forces and £3m to increase the annuity for Victoria Cross and George Cross holders.
The Government has also pledged £2m for the Children’s Air Ambulance, £2m for regeneration of the National Memorial Arboretum and £2.5m to establish an organisation that uses ex-military personnel to support disaster relief efforts overseas.
A further £1m has been set aside to renovate a Battle of Britain bunker, while £1m will go on a memorial for victims of terrorism.
The Government will spend £500,000 on welfare services for members of the armed forces in hospital and £250,000 on the Ludlow Museum.