Aykley Heads takes a major step forward with new Mayoral Development Zone

The North East Combined Authority has agreed to establish a Durham Mayoral Development Zone around Aykley Heads Innovation District and the surrounding area.

Endorsed by the North East CA cabinet on 17th March, the new Mayoral Development Zone means a further £27m of investment will be made into the Durham economy by Mayor Kim McGuinness and the Cabinet. This long-term commitment will help accelerate the creation of a vibrant new place for businesses, researchers, and the wider community.

After entering into a Collaboration Agreement with Durham County Council and Durham University in October 2025 to bring forward the vision for Aykley Heads, we’ve been working on the masterplanning of the site including new workspace, research facilities and other supporting uses.

Raife Gale, Senior Development Manager at Muse, said:

“Establishing a Mayoral Development Zone not only unlocks funding to accelerate delivery of this landmark place, which will feature world-class innovation workspace and social spaces, but also enables North East CA to work with Government to secure a Business Rate retention, providing a long-term tool to support future development and regeneration.

“Sitting at the heart of the East Coast Mainline innovation corridor, ourselves and our partners at Durham County Council and Durham University believe Aykley Heads will support both the regional economy and the national innovation network. Together, we are creating a vibrant and exciting new destination for people to work and enjoy themselves for years to come. The support from North East CA, through the creation of a new Mayoral Development Zone, is testament to our shared vision and the scale of opportunity we have to deliver long-term benefits for the whole of the North East.”

The Combined Authority’s decision has also been welcomed by our partners.

Cllr Andrew Husband, Leader of Durham County Council and North East Combined Authority Cabinet member for A North East We Are Proud To Call Home, said:

“Aykley Heads is already a great place to do business, as evidenced by the top-class organisations already here; with excellent transport links and close proximity to our World Heritage Site Durham Castle and Cathedral. It will soon also be a place to enjoy more of our fantastic cultural offer, when our new attraction, The Light, opens.

“Looking to the future, we’d already secured multi-million-pound investment for our plans to make Aykley Heads and the innovation district a site of national significance and make our city a place that sector-leading businesses want to be.

“Aykley Heads offers the potential for thousands of high quality jobs and we will soon be taking a significant step to bring forward new development here, by freeing up the County Hall site.

“With this newly announced funding and the creation of the Mayoral Development Zone, these really are exciting times for Durham.”

Professor Karen O’Brien, Durham University Vice-Chancellor, said:

“Durham University is committed to being a key partner in driving innovation and growth in our city and region.

North East Mayor Kim 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.

“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.”