The Treasury has donated approximately £140m from a pot of more than £450m Libor fines, a freedom of information request has revealed.
The Treasury, which has received Libor fines since June 2012, said the FCA had imposed fines in excess of £450m.
In a response dated 13 February 2015, the Treasury revealed it had given the Armed Forces £35m and committed a yearly £10m from 2015/2016 for the Armed Forces Covenant.
It provided £40m for veterans’ accommodation, £20m towards childcare, £10m for improved medical training, £10m for “blue light” charities, £10m for the Youth United Network, £5m towards refurbishments at the Imperial War Museum, and among other, smaller donations, rebated the Tower Poppies VAT.
The Treasury said it was working to ensure all Libor fines received to date would be committed within the current parliament.
Derek Bradley, founder of adviser community Panacea Adviser, who submitted the FoI request, said: “Fines are no longer used to reduce the regulatory cost on firms who had ‘done the right thing’ so they could enable that reduction to be passed back their customers by way of lower charges.
“Regulatory fines are no longer about putting things right surrounding the bad behaviour of the banks toward their customers. Bank fines are simply a form of taxation, windfalls.”
Right to reply
A Treasury spokesman said: “It is wrong to suggest these fines are used for any other purpose than previously set out.
“This money has not, is not and will not be used to pay down the deficit or any other purpose. All funds will be allocated to charitable causes to support the public good by the end of this parliament, as previously promised.”
Find out More
Derek Bradley’s commentary will be available from Friday 20 February here