One million pounds will be given towards the cost of building a memorial to honour the Muslims who died in the First and Second World Wars “in the service of freedom and democracy”, the Chancellor has said.

As he began his Budget speech on Wednesday, Jeremy Hunt vowed that past sacrifices made by those who lost their lives – no matter their faith, colour or class – will not be forgotten.

His Conservative colleague Sir Sajid Javid had asked last month how the Government, given its previous support for memorials honouring others, would help with a proposal to establish a memorial at the National Memorial Arboretum honouring an estimated 750,000 Muslims who have fought for British armed forces.

Mr Hunt told the Commons: “As we mourn the tragic loss of life in Israel and Gaza, the Prime Minister reminded us last week of the need to fight extremism and heal divisions.

“So I start today by remembering the Muslims who died in two world wars in the service of freedom and democracy.

“We need a memorial to honour them, so following representations from the Right Honourable Member for Bromsgrove (Sajid Javid) and others, I’ve decided to allocate £1 million towards the cost of building one.

“Whatever your faith or colour or class, this country will never forget the sacrifices made for our future.”

Sir Sajid was seen nodding in acknowledgment of the funding announcement.

The World Wars Muslim Memorial Trust registered in 2016 and seeks to honour those Muslim soldiers from the Indian subcontinent, the Middle East and North Africa who were involved in the two global conflicts.

It would also honour Muslim personnel from the UK who have died in combat in recent times.

Sir William Blackburne, chairman of the trust, said: “We are very grateful to the Government for its support.

“Our project coincides with the widespread re-evaluation of colonial history and the role Muslims play in a dynamic and changing modern Britain.

“We want to emphasise shared sacrifices, a common history and values, and an inclusive programme of education for everyone in the UK – Muslims and non-Muslims alike.

“The memorial will be a physical reminder of how people of all faiths make an impact working together and can continue to do so despite the challenges of those who attempt to divide our society.”