A REPORT on what Brexit could mean for the Stockton area economy will be debated at a high-powered council meeting later this week.

Areas of concern identified in the report for Stockton Borough Council’s Cabinet Committee include the effect on the chemical industry and the loss of EU-funding.

One in four of all the region’s chemical industry jobs are based in the borough of Stockton and the industry is North-East’s second biggest export trade after machinery and cars.

The last published figures in 2013 showed about 35,000 people were employed in the chemical industry across the region, many at Billingham.

The Stockton council report notes that extent on the impact of Brexit cannot yet be properly known. However it went on to identify potential difficulties.

It said: “Chemicals and other manufactured goods are subject to some of the highest tariffs. If World Trade Organsiation rules are adopted, or free trade with the EU is not achieved in Brexit negotiations, this would severely reduce the principal export market of many local businesses.”

The report goes on to recommend the council lobbies the Government to try and ensure free trade to the EU continues for manufacturing industries even after Brexit.

Another area of concern identified was the loss of EU funding. The Tees Valley receives about £170m in EU funding, about £245 for every man, woman and child. That is higher than for any other area apart from Cornwall and the Isles of Scilly. From that figure it is estimated that the borough of Stockton receives £49m a year; £27.5m from the European Regional Development Fund, £21.6m from the European Social Fund and a share of a £1.1m fund for rural development.

The council paper goes on to explain that some of that money is guaranteed and already allocated in the coming period, however the area still faces a potential loss of £37.7m of direct financial support.

It recommends that leading councillors argue to the Government that funding for current programmes continue even during exit negotiations and the Government release similar levels of funding to Teesside in the future.

The council paper said: “Macroeconomic (overall economy) impacts of the uncertainty around the decision to leave the EU and leaving itself are purely speculation and will depend on the speed and success of trade negotiations and the UK Government’s post-Brexit industrial strategy.”

Councillors will discuss the report at the cabinet committee meeting at 4.30pm on Thursday at Stockton Central Library.