Libor fines used to support military causes

Chancellor George Osborne has said that takings from fines imposed over the Libor banking scandal will be invested in the military.

The Libor scandal surfaced last June when Barclays was fined £290m for fixing the inter-bank interest rate.

Since then, Swiss bank UBS and the Royal Bank of Scotland have been fined hundreds of millions of pounds for rigging the rate, which is used to set a range of financial deals.

The Chancellor also said during his Budget statement that the military will be exempt from the 1% pay cap on public sector workers.