George Osborne has pledged to fund a statue to honour a former spy who saved 10,000 Jewish lives during the Holocaust.

Speaking at an event in parliament held to mark the heroic efforts of Major Frank Foley the chancellor announced he would support the campaign led by Dudley MP Ian Austin to get a statue built.

British intelligence officer Major Foley used his position working undercover as a passport control officer in pre-war Nazi Germany to help thousands of Jews escape.

Following the war he retired to Dudley in the West Midlands until his death in 1958.

Mr Austin said a statue was needed to support lessons about the Holocaust in schools and teach future generations about Major Foley’s achievements.

Mr Osborne said: "We will put the money in needed to fund the statue.

"He put himself in great danger and when you think about the 10,000 people he saved, that is nothing if you think about the children they had."

The Chancellor said he would use the money collected from "fines given to people who demonstrate the worst of British values to build something that demonstrates the very best."

He also announced a extra £500,000 funding for the Holocaust Educational Trust, so they could continue to take school children on "vital" trips to concentration camps.

Mr Austin told guests: “I would like to see a statue to Frank Foley so that people from right across the Black Country can come and learn about him and our country’s role in fighting for freedom, democracy and tolerance against Nazi Germany.

“When other European countries were sending Jews to concentration camps, Britain provided a safe haven for tens of thousands of refugees.

“I think this period defines what it means to be British – our unique response to the Holocaust and role in the War gives us the right to claim a particular attachment to the values of democracy, equality, freedom, fairness and tolerance.

“Frank Foley embodies these values. His refusal to stand by when people were being singled out because of their race and religion marks him out as a true local hero, and his name should be one that everyone in Dudley recognises and celebrates.”

The MP’s campaign was supported by the Holocaust Educational Trust and HET chief executive, Karen Pollock MBE, said: “Frank Foley was a true British hero. We value the incredible announcement of new funding thank the chancellor for his continued commitment.

"The story of the Holocaust is one of loss and destruction - it is remarkable individuals such as Frank Foley who show that there were glimmers of light in the most desperate of times."

Major Foley received the status Righteous Amongst the Nations by Israel in 1999, and awarded British Hero of the Holocaust posthumously in 2010.