The government has pledged in its mid-term review to donate £35m raised from bank fines to armed forces charities.

The government’s mid-term review was launched yesterday by Prime Minister David Cameron and the Deputy Prime Minister Nick Clegg.

It says £35m in fines levied on the banks for attempting to manipulate the Libor interest rate will be used to support armed forces charities.

The review also dedicates one-page to the Big Society and social action, detailing the government’s activity and plans in this area.

It says a payroll giving consultation, first announced in September, will be published shortly; and that more match-funding will be made available by government.

A number of previously-announced initiatives are also listed including the training of 5,000 community organisers and the introduction of online filing for gift aid claims.

Ahead of the mid-term report Acevo chief executive Stephen Bubb issued a statement criticising the government's level of commitment to the charity sector and commenting that the term Big Society "is effectively dead".

“The reality many charities now face is crippling spending cuts: half of local councils admit making disproportionate cuts to charities in spite of government guidance to the contrary. Most Acevo members whose funding is being cut have had to respond by reducing the services they provide," he said.