HOSPICE charities, search and rescue teams and the North West Air Ambulance are celebrating after the government announced that they would receive tax breaks.


The chancellor George Osbourne revealed in the Autumn Statement, the last before the 2015 General Election, that the groups would receive VAT refunds.


The pledge means that organisations such as East Lancashire Hospice will be able to claim back 20 per cent of the the amount of tax that they currently pay to central government.


Charities such as the Rossendale and Pendle Mountain Rescue Team will also benefit from the decision which came as part of a range of other economic announcements on Wednesday.


Other groups affected include Pendleside Hospice and the Bowland Mountain Rescue Team.


Mark Wakeman, a spokesman for the Rossendale and Pendle Mountain Rescue team, said: "It's a good thing for the team because it will save us a significant amount of money every year.


"This change will give us £6,000 a year extra which we can now look to invest in long-term projects.


"It will allow us to budget easier and know more where we will get money for things like vehicle replacement projects which come around every 10 years.


"It costs around £30,000 a year to run the team so this will safe us 20 per cent which is great.


"I'm sure everybody connected with the team will be pleased with this announcement.


"It has been a long time coming and it will make a big difference."


East Lancashire Hospice finance manager Caroline Sharkey said: “Any VAT refunds or additional VAT relief will be most welcome, especially in the current climate.


"It would consequently result in more funds being available to help care for our patients and their families.”


Fiona Morris, interim chief executive at the North West Air Ambulance Charity, said: “We are delighted with the announcement to the changes in VAT for UK air ambulance organisations.


"As a charity reliant on donations, this will have a positive impact, as the refunds will strengthen our financial position.


"However, as a charity we continue to rely heavily on the vital funds donated by our supporters that enable us to be there for those across the North West when needed.”


Also included in Mr Osbourne's statement in the House of Commons were plans to revamp stamp duty, a freeze on fuel duty and the UK taking a lead role in a European mission to Mars.