Politics · United Kingdom · 3 hrs ago
Developer urges Angela Rayner to investigate £55m loans to Manchester City owner
A Manchester developer has asked Angela Rayner to investigate £55 million in loans made to a group that owns Manchester City.
The loans came from the Greater Manchester Combined Authority in 2017, when Andy Burnham was mayor, and were intended to support thousands of homes in east Manchester.
The developer questions whether the loans had favourable terms and says there was no requirement to build affordable homes or proper due diligence.
The letter says the loans made up 97 per cent of a taxpayer-funded investment scheme by March 2026.
Rayner has not publicly responded to the request, which was sent to her department more than a month before the story was published.
The authority denies wrongdoing and says all the money is being repaid.
The questions come amid scrutiny of Burnham’s contacts with Manchester City and the club’s owners, whose group received the loans; the club was separately found by a Premier League commission to have breached financial rules between 2009 and 2018.
The sources do not say whether Rayner will open an investigation.
A Manchester-based property developer has urged Housing Secretary Angela Rayner to investigate £55 million in loans made to Manchester City owner Abu Dhabi United Group.
The loans were issued in 2017 by the Greater Manchester Combined Authority, then led by Mayor Andy Burnham, for housing projects in east Manchester.
The developer’s letter questioned why the loans did not require affordable homes and alleged that no due diligence was carried out.
The loans’ interest rates have not been made public, and the developer raised concerns that they may have been favourable.
The GMCA denied wrongdoing and said the money loaned from the fund is being repaid.
- Who
- A Manchester-based property developer asked Housing Secretary Angela Rayner to investigate loans to Abu Dhabi United Group, which owns Manchester City.
- What
- The developer raised concerns about £55 million in housing project loans, including their terms and due diligence.
- When
- The loans were made in 2017. The developer sent its letter to Rayner last month, according to the article.
- Where
- The loans were for housing projects in east Manchester.
- Why
- The developer questioned why the loans did not require affordable homes and alleged that no due diligence was carried out.
Developers and Conservative critics
Greater Manchester Combined Authority
Loans and scrutiny
Developers and Conservative critics
The developer questioned the loans’ terms and alleged no due diligence was carried out; Conservative critics called for an independent investigation.
Greater Manchester Combined Authority
The GMCA denied wrongdoing and said the money loaned from the fund is being repaid.
Rayner’s response
Developers and Conservative critics
Conservative critics said Rayner should investigate and accused her of failing to act.
Greater Manchester Combined Authority
The article reports that Rayner had made no public comment; it gives no response from her.
The Greater Manchester Combined Authority made £55 million in loans to Abu Dhabi United Group for housing projects.
A Manchester-based property developer sent a letter asking Angela Rayner to investigate the loans.
The loans to Abu Dhabi United Group made up 97 per cent of a taxpayer-funded investment scheme for developers, according to the letter.
It was revealed that Burnham had met Manchester City bosses at least six times as mayor.
The prime minister said at Prime Minister’s Questions that Manchester City’s owners had never raised the question of fraud charges with him.
- Loan amount
- £55 million
- Borrower
- Abu Dhabi United Group
- Lender
- Greater Manchester Combined Authority
- Loan year
- 2017
- Project location
- East Manchester
- Scheme share by March this year
- 97 per cent of a taxpayer-funded investment scheme
What people are saying
She is being asked to look into deals made under the man who she campaigned for and who just gave her a Cabinet job, and she is sitting on her hands.
If the PM has nothing to hide, he should welcome a proper independent investigation.
The chumocracy at the heart of Burnham's dealings in Manchester deserves proper scrutiny, not political protection.
Rayner should put the public interest ahead of party loyalty.