Refund fuel VAT for air ambulances

Backbench MP's are calling on ministers to refund the VAT currently paid on fuel used by air ambulances services.

The Hexham MP, Guy Opperman, said the Great North Air Ambulance currently pays more than £100,000 on fuel, with VAT at 20% on top.

Under current regulations, the RNLI doesn't have to pay VAT on fuel bills and MP's would like similar arrangements for the air rescue services. But ministers do not have a free hand on this issue as the VAT exemption rules are enforced by EU regulations.