Councils have said they will need billions of pounds in extra funding from the Treasury after Brexit to replace the money lost from EU regeneration funds.

The Local Government Association called for more certainty from ministers to guarantee that regeneration projects will not lose out when the UK leaves the bloc in 2019.

Philip Hammond, the chancellor, has said he will carry on funding structural and investment fund projects, as long as they were agreed before leaving the EU. But new projects would have to go through an assessment process overseen by the Treasury to determine whether funding should be guaranteed by the UK government post-Brexit.

The government has proposed creating a “shared prosperity fund” to take over the financial assistance for regeneration previously provide by Brussels, but the LGA said this plan so far lacked detail.

The group representing local authorities said about £8.4bn was allocated through the European structural and investment funds for 2014-2020.

Kevin Bentley, an executive member of the LGA, said: “Since the referendum, one of the biggest concerns for councils has been the future of vital EU regeneration funding. Councils have used EU funds to help new businesses start up, create thousands of new jobs, roll out broadband and build new roads and bridges.

“Securing a government commitment around this vital regeneration funding has been an important step. To further its devolution commitments, we want to work with the government to help develop a fully funded and locally driven successor scheme with local government in areas of all types.”

Bentley said the current seven-year period for distribution should be maintained to allow for long-term planning, but funding should be easier to access and distributed by local areas, rather than centrally.

“With national funding for regeneration increasingly being depleted, all local areas have become increasingly reliant on EU money and local areas are desperate to get on with creating jobs, building infrastructure and boosting growth,” Bentley said.

A Treasury spokeswoman said: “As the chancellor said last year, the government will guarantee EU funding for all structural and investment fund projects agreed before we leave the EU – provided they are value for money and in line with UK priorities. This will ensure projects are not disrupted, no community misses out, and gives British businesses – and potential investors – the certainty and stability they need to help us make a success of Brexit.”