By Gavin Cordon, Press Association Whitehall Editor

The GOVERNMENT is to fund a permanent memorial dedicated to the victims of the Tunisian beach massacre, David Cameron has announced.

The Prime Minister said that a separate site of remembrance would be created for all British nationals killed in terrorist atrocities overseas.

Both memorials will be paid for out of fines levied on the banks by the Financial Conduct Authority.

Mr Cameron also announced that a special service would be held in the autumn dedicated to all those caught up in the attack on the Tunisian resort of Sousse which left 30 British holidaymakers dead.

"Those who lost their lives in Tunisia last week were innocent victims of a brutal terrorist atrocity," the Prime Minister said.

"It is right that we mark and commemorate them and others murdered by terrorists overseas appropriately and support the loved ones they have left behind in every way we can."

The announcement comes as the country prepares to mark the tenth anniversary of the 7/7 London bombings with a wreath-laying ceremony at the memorial in Hyde Park and a national service of remembrance at St Paul's Cathedral.

Foreign Office Minister Tobias Ellwood, who has been working with the families of the Tunisia attack victims, said that they would be consulted about the location and design of the memorial over the coming months.

"This memorial will be for the families, so we want to talk to them about our plans to determine what they feel is most appropriate," he said.

Mr Ellwood, whose brother Jonathan was killed in the 2002 Bali bombing, said the memorial could well be sited in the North as that was where most of the victims came from.

"Having been through a similar situation, I know how important it is that these families, who have been united by a single tragedy, have that marked in one place," he said.

"They will end up providing mutual support to each other, and to have this memorial to their loved ones will be very important. It is also right that the nation recognises the scale of this appalling event."

The minister, who has long campaigned for a single memorial to all victims of terrorism overseas, welcomed the announcement that it would now go ahead.

"Sadly, we live in very difficult and dangerous times. We have to recognise that there are many victims of terrorism who do not have a grave, whose families don't have a place where they can lay flowers and grieve in the normal way," he said.

"It is therefore appropriate that we have a national memorial for those caught up in terrorism abroad. These people must never be forgotten."