Jobs on way as Chancellor ‘accelerates’ North East projects

The Government said it expects major projects across Gateshead and Newcastle to move into delivery this year as part of the new City Investment Funds. 

It also wants to speed up the delivery of the first commercial building at the new Durham Innovation District at Aykley Heads, next to Durham Railway Station.

The project, described as a “vital regeneration opportunity”, includes the demolition of County Hall and the creation of new offices.

Durham County Council has linked up with a development partner to develop land at Aykley Heads and (Image: Durham County Council)

Phase 1 will deliver 50,000 square feet of high quality Grade A office space, which will create the innovation ecosystem to support the development of a further 350,000 square feet.

It will also help lay the foundations for more than 4,000 high-quality, knowledge intensive jobs within the site.

Meanwhile, in Tyne and Wear, the Government wants to get the ball rolling on a string of projects later this year that have the potential to deliver thousands of new homes, new commercial space and stronger links between key city-centre neighbourhoods for locals. 

This includes the Gateshead Quays, touted to become a new arts and leisure destination, the Newcastle Helix and Forth Yards, a 52-acre stretch of land on the banks of the River Tyne, and the Stephenson Quarter, a 10-acre regeneration site behind Newcastle’s Central Station.

Muse was announced as Durham County Council’s joint venture partner to deliver the first phase of a new innovation district last year.

(Image: Durham County Council)

The first phase comprises the 15 acre Aykley Heads site, which the council owns and already has outline planning consent for 40,000 sq m of commercial space.

The 62 hectare innovation district is already home to several major businesses and institutions, including Durham University Business School.

The opportunity will bring together the university, industrial partners, government, and private sector investors.

It is touted to become a regional hub for research, data science, fintech, green technology, and healthcare.

The council is preparing to leave its ageing County Hall headquarters, with demolition of the building expected to start this year once staff and meetings have been relocated.

‘Huge potential’ 

Two months ago, the Chancellor announced an additional £2.3 billion for major city regions which will go directly into the hands of mayors. 

How the new Aykley Heads site could look (Image: Durham County Council)

The money is made up of new grants, loans and long-term investment and will be used to grow city economies under the leadership of mayors. 

City Investment Funds, which were announced by the Chancellor at her Mais Lecture earlier this year, provide local leaders with the tools to respond to specific challenges in their area. 

They can be deployed flexibly to accelerate projects, expand city-centre housing and office markets, and support major regeneration schemes. 

The Government said mayors will be able to utilise the flexibility afforded to them through their Integrated Settlements when deploying elements of the funds. 

Chancellor of the Exchequer Rachel Reeves said: “We’re backing the huge potential of the North East, with major regeneration right across Newcastle and Gateshead, and the jobs of the future coming to Durham.”

A spokesperson for the North East Mayoral Strategic Authority, said: “We are investing record amounts in our cities to create new jobs, build neighbourhoods where people will want to live and work and re-ignite local pride. 

“This includes building a new film studios in Sunderland, a new arena in Gateshead, thousands of new homes in Newcastle and a new innovation district in Durham to take the place of the old county hall bringing hundreds of new jobs.

”We’ve secured £120m from Government for the North East’s cities and that commitment is a huge boost to our ambition as we deliver some of the country’s most exciting urban development projects.”