During his tenure as a Member of Parliament, Andy Burnham utilized taxpayer funds to assist in the purchase and renovation of a London flat, according to reports from 2009. Burnham, who served as a Labour MP, claimed £16,644 on his parliamentary expenses to cover costs associated with acquiring a property in south London. This amount included stamp duty and legal fees for a £215,000 flat that he and his wife, Marie-France Van Heel, still owned.
The arrangement also involved a significant sum from the sale of Dolphin Square, a luxury apartment complex near Westminster where Burnham had been renting a flat. When the building was sold in 2005, residents received substantial payments to vacate their tenancies. Burnham negotiated a deal that allowed him to add nearly all of his £18,200 windfall to his parliamentary second home allowance. This allowed the funds to be used towards the purchase and renovation of the south London flat, a transaction which his critics argued helped him avoid Capital Gains Tax.
At the time the story broke, Burnham, who was then the Culture Secretary, asserted that he had not sought to avoid capital gains tax and that all arrangements were approved by the fees office. He stated that he made no personal profit from the transaction and insisted he had claimed less than he was entitled to on his Additional Costs Allowance (ACA), under-claiming by approximately £40,000 over five years. He maintained that his claims were within the rules and spirit of parliamentary guidelines and were neither extravagant nor luxurious.
Correspondence from the period indicates a strained relationship with the Commons Fees Office, which managed MPs' expenses. In one letter dated December 2005, Burnham expressed urgency regarding payments, suggesting potential marital difficulties if not resolved. His wife also engaged with the authorities regarding renovation invoices, indicating some administrative challenges in the process.
Burnham's claims were not without scrutiny. He was denied a claim for mortgage interest on both his London flat and his constituency home simultaneously. An ineligible claim for mortgage capital rather than interest was also submitted. Even a £119 receipt from Ikea was partially rejected, including a £19.99 bathrobe claim.
Later, following a finding by the Commons sleaze watchdog that other MPs living in Dolphin Square had broken rules by keeping their payouts, pressure resurfaced for Burnham to repay his windfall. However, a spokesman for Burnham, who was not investigated by the Commissioner for Standards, argued that his use of the payout had saved taxpayer money by preventing additional expenses claims and that there was no personal gain for Burnham.
Records show that Burnham claimed £10,700 for accommodation in 2010-11, including mortgage interest. After rules changed, he was reimbursed £14,499 for rent by the Independent Parliamentary Standards Authority (IPSA) the following year, along with council tax. By 2017, his rent claims had risen to £18,214.
Simon Danczuk, a former Labour MP and author, commented on Burnham's past residency at Dolphin Square, noting the property's notoriety. He stated that Burnham received a personal payout of £18,200 upon agreeing to leave Dolphin Square, which was used for the purchase and renovation of another London flat. Danczuk expressed surprise at Burnham's current focus on Manchester, given his past enjoyment of London's property market.