Durham innovation hub gains £27 million backing

Plans to transform a landmark site in Durham city centre into a hub for innovation and business growth have taken a step forward following new funding.

A £27 million investment has been announced by North East mayor Kim McGuinness to unlock development at Aykley Heads, the site currently occupied by Durham’s County Hall.

The funding will support the creation of a Durham Mayoral Development Zone (MDZ), designed to drive regeneration and attract high-tech businesses to the area close to Durham railway station and overlooking the city’s historic centre.

Plans include the development of around 400,000sq ft of high-quality workspace delivered across four phases, forming part of the wider Durham Innovation District.

The project will be delivered through a strategic partnership involving Durham County Council, its joint venture partner Muse, Durham University and the North East Combined Authority, which is expected to review the proposals at its cabinet next week.

Officials say the MDZ will align investment in innovation, culture, connectivity, housing and placemaking, following a similar model already introduced in Newcastle-Gateshead and Sunderland.

Mayor McGuinness said: “I want to give Durham a major boost, establishing a new home for innovation right at the heart of the city which will create more jobs and a vibrant place where people and businesses can thrive. 

“Our people are our biggest asset, and we want to keep more of our emerging talent within the North East to give local people access to the best opportunities. 

“I want to ensure that graduates in the region can see their future here - investing, working and living in our amazing cities and villages.  

“Durham is iconic and its historic university and cathedral are well-known across the globe, but it’s also a key strategic city with excellent transport links and home to many amazing businesses. 

“I want more growth right across the North East, so I’m pleased we are on our way to establishing a new Mayoral Development Zone for Durham focussed on innovation and regeneration of the city including the area in and around County Hall.”

Councillor Andrew Husband, leader of Durham County Council and North East Combined Authority cabinet member for A North East We Are Proud To Call Home, added: “We’re delighted with this announcement of £27 million from the Combined Authority which is a further boost to our plans for Aykley Heads to be the beating heart of the Durham Innovation District.

“Aykley Heads is already a great place to do business, as evidenced by the top class organisations already based here, boasting excellent transport links and close proximity to our World Heritage Site Durham Castle and Cathedral. 

“What’s more, it will soon be a place to enjoy culture, when our new attraction, The Light, opens.

“We’re getting ready to leave County Hall to pave the way for land at Aykley Heads to be developed, providing the opportunity for thousands of new quality jobs to be created. 

“This funding and the creation of the MDZ can only help accelerate our exciting vision for the site.”  

Alongside the new workspace, the initiative will build on Durham University’s continued investment in research and business facilities, including the expansion of STEM infrastructure and innovation spaces across the city.

By bringing together research, enterprise and cultural organisations, the scheme aims to strengthen Durham’s innovation ecosystem and support the creation of new jobs and long-term economic growth.

Professor Karen O’Brien, vice-chancellor at Durham University, added: “Durham University is committed to being a key partner in driving innovation and growth in our city and region. 

“The Durham MDZ and the accompanying financial investment will drive further economic, social and cultural development in our city and region, increasing the attractiveness of Durham as a destination for work, study and living.”

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