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NECC's job fears as investment is cut

The chamber has called on councils to ensure contracts are awarded to firms which recruit locally, make sure those conditions are passed on to supply chain businesses and avoid using national frameworks for future construction contracts.

The data showed that in the Tees Valley, Darlington faces the largest cutback in capital spending - from £168m to £39m by 2013.

Meanwhile, investment in Stockton will fall by £50m in the next three years to just £5m.

A spokesperson for Stockton Borough Council said: “We haven’t included in our capital programme, at this stage, schemes which are funded from specific Government allocations. These will be added once they are formalised.”

The figures showed that spending in Hartlepool will remain broadly static - £35m this year and the same amount in 2012-13.

Councillor Robbie Payne, the council's cabinet member for finance and performance, said house building schemes and new learning facilities were creating job opportunities for the local the construction sector.

He added: “Over the next few years the schools transformation programme will result in tens of millions of pounds worth of investment and we will continue to explore further capital investment at every opportunity.

“We’ve also got the £464m new hospital to look forward to, which is a massive capital investment.”

The figures showed that spending in Redcar & Cleveland is set to rise - from £42m this year to £75m in 2012-13. No data was available for Middlesbrough.

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