AbstractA neural field models the large scale behaviour of large groups of neurons. We extend previous results for these models by including a diffusion term into the neural field, which models direct, electrical connections. We extend known and prove new sun-star calculus results for delay equations to be able to include diffusion and explicitly characterise the essential spectrum. For a certain class of connectivity functions in the neural field model, we are able to compute its spectral properties and the first Lyapunov coefficient of a Hopf bifurcation. By examining a numerical example, we find that the addition of diffusion suppresses non-synchronised steady-states while favouring synchronised oscillatory modes.