Industry News

Councillors agree next step in major development plan

Publication Date: 13th Feb 2025

The potential for thousands of new jobs in County Durham has moved a step closer, after senior councillors agreed to progress to the next stage in a development plan.

Durham County Council’s Cabinet has agreed to take the next step in its procurement process, in its plans to develop land at Aykley Heads as a Strategic Employment Site, and deliver the new Durham Innovation District.

Councillors agreed to the local authority taking the next step in the process, with a preferred joint venture delivery partner.

The 35,483 square metres of land at Aykley Heads, in Durham City, have the potential to deliver in the region of 3,700 jobs.

Cabinet also agreed to proceed with negotiations to buy the freehold on the Milburngate site in Durham City.

Milburngate and Aykley Heads would, under the council’s vision, form part of the Durham Innovation District. So too would Durham University’s Business School and recently approved Data Centre, and the refurbished Durham Light Infantry Museum and Art Gallery - the latter two of which are also at Aykley Heads.

Cllr James Rowlandson, the council’s Cabinet member for resources, investment and assets, said: “These are really exciting times for our city and county with the prospect of progress on major sites such as Aykley Heads and Milburngate, which we know in particular people want to see movement on.

“It is long-standing goal of ours to develop a Strategic Employment Site at Aykley Heads and moving to the next stage of the process of entering a Joint Venture Delivery Partnership shows we remain committed to delivering on that ambition.

“The site has the potential to deliver in the region of 3,700 quality jobs for our residents and to be a driving force for County Durham’s future economic growth, as well as that of the wider North East.

“Aykley Heads has a unique offering. It is a high-quality city-based site with beautiful natural landscape; direct access to Durham’s main line rail station, with its connectivity to London, Edinburgh, and other economic centres; and unrivalled views of UNESCO World Heritage Site Durham Castle and Cathedral and Castle

“It also has a world leading research university on the doorstep that has supported us, alongside the North East Combined Authority, in our plans for redevelopment of Aykley Heads and creation of the Durham Innovation District.

“We firmly believe the involvement of Durham University, and the exciting plans for a supercomputer, can act as a catalyst to attract innovation-led businesses and investors to Aykley Heads.

“Together with the university’s Business School, the reimagined DLI Museum and Art Gallery and the potential progress at Milburngate, we want Durham to have an innovation district of regional, national, and international significance, that will deliver jobs for residents and make our city a great place to live, work, visit and invest.”

Professor Colin Bain, Pro-Vice-Chancellor (Research) at Durham University, said: “The development of Aykley Heads and the Durham Innovation District is a unique opportunity to catalyse inclusive, innovative and sustainable growth in our region, by attracting new investment and creating new, high-quality jobs.

“We look forward to working with the joint venture delivery partner and Durham County Council, to ensure our communities benefit most from this nationally significant project.”

Innovation districts are geographic areas with networks of knowledge-producing organisations such as universities, research bodies, cultural institutions, and knowledge-intensive businesses. They bring together innovators, entrepreneurs, researchers, creatives, knowledge workers and investors to work together, to collaborate, compare and compete, creating the conditions for business growth.

The council’s vision is for Aykley Heads and the innovation district to be home to research, green jobs, electronics, digital and creative, fintech, life sciences and satellite applications sectors.

A joint venture would see Aykley Heads and the innovation district delivered and operated by the council working with a strategic partner which would bring the skills, networks, investment, and expertise needed. By partnering, the council would benefit from market knowledge and insight to inform and shape the nature and composition of Aykley Heads and the innovation district. It would also retain long term influence over activity at Aykley Heads and the innovation district; and a share in their future economic success.

The county council’s plans for Aykley Heads to become a Strategic Employment site as part of the innovation district will see demolition of the authority’s County Hall headquarters.

Staff have already begun relocating to alternative office accommodation, including at purpose-built Corten House; with the refurbished Rivergreen Building to follow, both at Aykley Heads.

The North East Combined Authority has also invested £9.2m in infrastructure work at Aykley Heads - designated a key strategic site in the region’s devolution deal – in anticipation of its redevelopment as part of the innovation district.