URGENT assurances are being sought from Government over the future of £145m of funding for the Tees Valley area, which could be lost following the EU referendum vote.

The Tees Valley and the North-East could be hit hardest by Brexit, an official report shows, with curbs on free trade and migration affecting business more than any other region.

Teesside University relies on the EU for 76 per cent of its competitive grant research funding, while more than one in 20 of its students are from overseas.

And a post-Brexit recession could hit the region harder than any other, the council document claims.

The Tees Valley is benefiting from £170m of EU funding from 2014-2020 but only £24.6m of this has been allocated.

The Government has said all EU funding before its Autumn Statement is guaranteed where it has been earmarked, but that leaves the future of the £145m of unallocated funding for Tees Valley uncertain.

This in turn could have a "significant impact" on an economic blueprint for the area, the Tees Valley Strategic Economic Plan. The plan targets include creating more than 2,300 jobs and it is hoped the Government will either plug the shortfall, or strike a deal with the EU for the funding to remain.

The report to Middlesbrough Council's executive, which will be discussed on September 6, says that the Tees Valley Combined Authority, (TVCA) which was formed last year ahead of a devolution deal for the area, will press government for clearer answers on funding, and to seek assurances that any shortfall will be plugged.

Middlesbrough Mayor Dave Budd told The Northern Echo last night: "There are a lot of question marks over everything and we do need some answers from government, or at least be told when we might have some answers.

"We want some certainty because it is incredibly important, but it would appear the UK hasn't even started negotiating our exit from the EU.

"We have already written to Sajid Javed, the secretary of state for Communities and Local Government, to business secretary Greg Clark, and we have asked for a meeting with Andrew Percy, the new minister in charge of the Northern Powerhouse.

"But really nothing is set in stone - there are questions over all of these factors and we are just exploring the impact Brexit could have on the Tees Valley."

The council report also raises concerns about the impact of EU exit on North-East business, which exports more goods to the common market than any other region.

It says: "The majority of exports to the EU are chemicals and cars. These products currently attract the highest tariffs for imports into the EU, meaning that the North-East economy could be very negatively affected by any post-Brexit trade deal that does not involve free access to the Single Market."

Curbs on migration could also affect the Tees Valley's economic plan, with fewer skilled workers available for sectors which will demand an extra 25,000 diploma-level jobs in the next ten years, not all of which can be found locally.

And it could affect the number of students applying to study in the Tees Valley, which is a major source of income, hitting both Durham University and Teesside hard.

The TVCA agreed last week to try to secure ring-fenced government funding for Tees Valley equivalent to the EU grants it currently receives, to fight for good deals for industry in any Brexit deal, and also protect the rights of foreign students to study in the UK.