COUNCIL chiefs will 'maintain a close view' on the impact of Brexit amid fears that it could bring 'a fresh round of austerity measures'.

Uncertainty surrounds how leaving the EU will affect Warrington Borough Council (WBC), as well as the Cheshire and Warrington Local Enterprise Partnership (LEP).

European Structural and Investment Funds (ESIF) are used to invest in growth and jobs across the county.

The ESIF in Cheshire and Warrington includes £66.4m from the European Regional Development Fund, £54.8m from the European Social Fund and £2.5m from the European Agricultural Fund for Rural Development – a total of £123.7 million.

WBC leader Cllr Terry O'Neill, who chairs the ESIF committee, a sub-committee of the LEP, is unsure whether other streams of funding will be provided after 2020, when the ESIF growth programme ends.

He said: "The Government did guarantee it until the end of 2020, so we are doing our best to spend the money as quickly as we can.

"But what happens after 2020? There is no detail around this shared prosperity funding that has been announced.

"European money was targeted to less prosperous areas, no one knows what the future holds."

Amid the uncertainty surround the final deal, the politician also fears there could be 'a fresh round of austerity measures' for WBC.

"The council has a strong record of supporting and investing in Warrington's economy," he added.

"We will of course maintain a close view on the impact of Brexit in key areas, such as employment, housing and business.

"While Warrington continues to buck the trend regionally and has a robust economy, it is vital that the council is able to see any adverse effects from Brexit and to respond accordingly."

Warrington South MP Faisal Rashid believes 'hard-line Tory Brexiteer ministers cannot be trusted to negotiate our withdrawal from the EU'.

He added: "The recently leaked analysis by the Government shows just how badly damaged the north west economy will be under a bungled Brexit deal negotiated by our Prime Minister, who lurches from one crisis to the next.

"The leaked Government figures show the north west could suffer a 2.5 per cent drop in gross domestic product (GDP) while remaining in the EU's single market via the European Economic Area, an eight per cent drop if it agrees a free trade deal and, if Britain leaves the EU without a deal and reverts to trading on World Trade Organisation terms, the north west could suffer a 12 per cent drop in GDP.

"My position and the position of the Labour Party has always been very clear.

"We must have a Brexit deal that works for everyone.

"The final Brexit deal must work for the north west and indeed every region across the UK.

"That Brexit deal must protect jobs, the economy and rights – and it must not lead to a drop in protections or standards."

Cllr Bob Barr, leader of the town's Liberal Democrats, has also expressed concerns over how Brexit could directly impact on the town.

He said: "Warrington Liberal Democrats campaigned strongly to Remain in the EU.

"We accepted the result and few of us wanted a rerun of the original referendum.

"However, we have been united in believing that a referendum is required once the final deal is clear.

"Nothing has been presented to alter our view that Warrington, which is unusually reliant on science, technology and European co-operation, will be unusually adversely affected by leaving.

"We are proud to reflect Warrington's Remainers' view and to campaign for the public to have a last say on an exit from Brexit."