CHARITIES and businesses were today celebrating cash boosts pledged in the Chancellor’s Autumn Statement.

George Osborne announced business rates will be reviewed and VAT paid by hospices and search and rescue organisations will be refunded.

Last year, St Helena Hospice incurred just over £116,000 of irrecoverable VAT costs and the Essex and Herts Air Ambulance Trust spends about £150,000 every year.

Mark Jarman-Howe, chief executive officer at St Helena Hospice, said the amount they paid in VAT last year could pay for all of their patient and family services for eight days.

He said: “This is a positive change because it will help relieve the considerable VAT burden, meaning we can fully invest our funds in the delivery of frontline care.

“We recognise the important work Hospice UK and other national charities have done to influence Government policy.”

A spokesman for the air ambulance said the refund could pay for about 55 missions a year.

She said: “This is good news for the charity and could potentially be very beneficial.

“Although the finite detail has not yet been fully provided, the Association of Air Ambulances will be working with the Treasury and HMRC to gain a better understanding of this exciting news.”

David Miles, Essex Federation of Small Businesses chairman, said the review of the business rate system was critical to supporting small businesses.

He said: “The current system is out of date and needs to be put out to grass.

“It’s complicated, opaque, regressive and unresponsive to changes in economic conditions.

“Many of our members tell us paying business rates is their third biggest cost after rent and wages, yet the tax is poorly targeted and not based on ability to pay.” Paul Smith, chief executive officer at estate agency Haart, which has its national headquarters in Colchester, praised changes to stamp duty.

He said: “Top marks for the Chancellor who has paid heed to the property industry’s long held concerns over the punitive stamp duty land tax which has disproportionately affected homebuyers and sellers in the South East.

“By introducing a progressive tax banding system there will be more winners than losers and the reform takes the steam out of the proposed mansion tax.”

Members of the Campaign for Real Ale also supported the Chancellor’s extension of small business rate relief and an additional £500 business rates reduction for most pubs in England.

Alan Wareham, chairman of the Colchester and North East Essex branch, said: “Any relief the coalition could offer is going to be of a benefit to licensees.

Business rates are a big bugbear for publicans.”

However, there is no money for the A120.

Campaigners had hoped moneywould be pledged to carry out improvement works between Harwich and Colchester.

The Government is investing £15billion on the nation’s roads, including looking at adding a third lane on the A12 between Colchester and Chelmsford But the A120, between Harwich and Great Bromley, will receive no cash.

Harwich town councillor Dave McLeod said: “I am absolutely disgusted.

“We have spent many years trying to improve the area and we have lost out due to a road which is not fit for purpose.”