A north-east hero who was brutally attacked as he shielded the Princess Royal from a kidnapper is to receive a £10,000-a-year pension as a thank you from the nation.
St Fergus-born Jim Beaton, a former policeman and close protection officer to the royals, is among a group of Victoria and George Cross recipients who will benefit from a £3million pot.
The cost of the annual, tax-free award, which will be formally announced in today’s emergency Budget, will be met using fines raised by the Financial Conduct Authority for bankers’ misdemeanours.
George Osborne said he was delighted to welcome some of the “true heroes of British life” to Downing Street for a reception where he informed them of the extra funding.
The Chancellor added: “These inspirational people have gone above and beyond for this country and it is only right that we do all we can to support them.
“That’s why I am so pleased to commit an extra £3million to the holders of the Victoria Cross and the George Cross in the Budget.
“It is quite right that we use the bank fines from those who demonstrated the worst of values to support those who have shown the best of British values.”
In 1974, the then Inspector Beaton was in a car with Princess Anne and her now ex-husband Captain Mark Phillips when a gunman forced it to a halt in the Mall as they were returning to Buckingham Palace.
The kidnapper used two pistols at point blank range, hitting Inspector Beaton three times, rendering him unconscious.
The former Peterhead Academy pupil, who retired from the police with the rank of chief superintendent in 1992, received the George Cross for his actions.
There are 10 living holders of the Victoria Cross and 20 living holders of the George Cross.
Recipients of the two highest honours in the UK have traditionally received a small annuity, worth £2,129 last year, but Mr Osborne believed the amount should be increased.
The fund, which will also be used for events marking the 75th anniversary of the Victoria Cross and George Cross Association, is part of a larger package of donations to military causes made up from bank fines over the last five years.