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An air ambulance charity's plan for a new base and centre of excellence in the North East has received a £1m pledge from chancellor Philip Hammond.

The Great North Air Ambulance Service (GNAAS) wants to bring crews, fundraising and admin staff under one roof and enhance research and training.

It asked for £1.9m from a fund generated by fines on banks that manipulated lending rates.

Despite only being allocated £1m, the charity plans to press ahead.

GNAAS currently has its main operational base at Durham Tees Valley Airport, with admin and fundraising offices in Darlington and Newton Aycliffe.

Sites in the Darlington and Tees Valley area were being considered for the new "all-in-one" centre. The charity's Cumbria operation would be unaffected.

Trustee Grahame Pickering said it would take the service to "the next level".

However, in Mr Hammond's Autumn Statement, it was announced the GNAAS would be allocated just £1m for the project.

Mr Pickering, who is also chief executive of GNAAS, said: "Our vision remains to create a new base and a centre of medical excellence for the benefit of people of the North.

"It's a shame this decision leaves something of a question mark over a project which will ultimately save lives and ease suffering of patients, young and old.

"However, we are well accustomed to overcoming such hurdles and will be re-examining our contingency options to determine how best to make our dream become a reality."

GNASS, which operates three helicopters covering the North East, Cumbria and North Yorkshire, was founded in 2010.