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Budget 2013 - Armed forces get pay rise

The government has backed down and agreed to find more money for the armed forces, the 2013 Budget revealed.

George Osborne confirmed in the 2013 Budget this afternoon that military personnel would be exempt from a one per cent cap on public sector pay.

The decision follows a controversial call from the government’s pay advisers for ministers to give troops extra money to compensate them for the impact of recent defence cuts. The rise was said to be a “crowd-pleaser” in an otherwise 'grim Budget', which confirmed the state of the public finances.

The extra money going to military causes, including their exemption from the public sector cap, is to be drawn from the fines collected in the libor rigging scandal last year. Osborne was quoted in the speech as saying "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."

He added that the government was going to do everything it could to protect any military personnel with savings located in Cyprus.

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