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Ministry of Defence: LIBOR

Answer

The Ministry of Defence (MOD) is clear that LIBOR funding should not be used to fund Departmental core responsibilities. The funding application form explicitly states that funds cannot be used to top-up existing grants and aids from Government Departments or for projects, activities or services that the State has a legal obligation to provide. The use of LIBOR fines to support additional facilities and programmes over and above the core activities, support, and infrastructure provided by the MOD is entirely consistent with the scope of the LIBOR fund.

Armed Forces related LIBOR grants, including bespoke funds such as the Armed Forces Covenant Fund and Aged Veterans Fund, are committed by HM Treasury and administered by the MOD. Veterans, emergency services charities and other related good causes benefit from hundreds of millions of pounds from LIBOR banking fines. Money given to Departments since 2012 from these fines is ring fenced to be spent on these worthy causes. Funding for centres and facilities is consistent with supporting good causes and is making a difference to the Armed Forces community.

As part of the routine governance of the LIBOR fund, in early 2017 the Treasury commissioned a review of all LIBOR grants committed since 2012. This review, which will include all LIBOR grants made directly by HM Treasury, as well as grants awarded under the Covenant Fund, the Aged Veterans Fund and the Veterans Accommodation Fund, will report in summer 2018. The National Audit Office have been kept fully informed of the progress of the review.

As the Minister responsible for Service people and veterans, I meet regularly with Service charity representatives and discuss a wide range of issues, including funding.

Secondary information

Type

Written question

Reference

131326

Session

2017-19

Grouped for answer

Yes

Subjects

Finance Ministry of Defence LIBOR

Link

View this Written question on www.parliament.uk