A national competition will be held to design the centenary paving stones which will be placed in areas of the UK where Victoria Cross recipients of the First World War were born.
There will be 28 stones unveiled next year to commemorate medals awarded in 1914, and other stones will be unveiled each year up until 2018.
Communities Secretary Eric Pickles, announcing the competition, said: "Laying paving stones to mark these Victoria Cross heroes will ensure that there is a permanent memorial to all the fallen who fought for our country."
He added the stones would "help residents understand how their area played its part in the Great War, and ensure memories of that sacrifice for British freedom and liberty are kept alive for generations to come."
The British Army has taken delivery of its most advanced engineering vehicle - a remote controlled armoured digger.
The 30-tonne vehicle, known as Terrier, can be used to dig holes, lift objects, drill into the ground and even shatter concrete with troops a safe distance away.
Terrier, which can reach speeds of almost 50mph, will be used by the Royal Engineers to carry out tasks in the UK and on "the battlefields of the future".
The British Army will receive 60 Terriers as part of a £360 million project with BAE Systems, which designed and built the vehicles in the UK.
Warrant Officer Steve Cahill of the Royal Engineers, who has trialled Terrier, said: "The Terrier is a world-leading engineer support and combat vehicle, which can dig holes, lift objects and drill into the ground of shatter concrete.
"All whilst being controlled remotely and providing armoured protection, top cover and smoke shields to our troops.
"Very much in line with the ethos of The Corps of Royal Engineers, Terrier is a versatile vehicle capable of taking on a variety of tasks."
A British Army spokesman said it was "ridiculous" to suggest the extra five days holiday granted to them this Christmas is a cost-cutting measure.
The spokesman said:
In recognition of the exceptionally busy year the Army has had both on operations and at home - including vital support to the 2012 London Olympics, fuel tanker drivers strike and Diamond Jubilee - the usual Christmas leave period has been extended.
Personnel who are essential to supporting operations will remain on task regardless of this leave period and there will be no impact to the mission in Afghanistan.
The British Army has been granted an extra five days holiday this Christmas in recognition of their hard work during 2012.
Defence officials have ordered staff to take leave for 25 days between December 14 and January 7 to say thankyou for their service during the London Olympics and Diamond Jubilee.
The extra holiday will allow buildings to be closed, cutting utility costs, and staff will have the option of working from home.
But the move has been criticised as a cost-cutting exercise by one former Army official.
Richard Kemp, a former commander of UK ground forces in Afghanistan, told The Sunday Times: "Shutting down the army for an extended period over Christmas is an act of sheer desperation by military commanders starved of cash by the Government."