Andy Burnham, a prominent figure in the Labour Party, utilized over £16,000 in parliamentary expenses to assist in the purchase and renovation of a London flat during his early tenure as a Member of Parliament. This emerged in 2009 during the MPs' expenses scandal.
At the time, Burnham was a Labour MP and rented a flat in Dolphin Square, a complex near Westminster. When the building was sold in 2005, residents received financial compensation to vacate their properties. Burnham negotiated a deal that allowed him to retain a significant portion of his £18,200 payout, which he then combined with his parliamentary second home allowance. This allowed him and his wife, Marie-France Van Heel, to buy and renovate a flat in South London, which they still own.
The £16,644 expense claim covered stamp duty, legal fees, and renovations for the property. By treating the windfall as a parliamentary expense, Burnham avoided potential Capital Gains Tax on the amount.
Burnham has previously stated that he made arrangements to pay the money to the fees office and that all arrangements were approved. He asserted that he did not make any personal profit from the transaction and that it was "complete nonsense" to suggest he sought to avoid capital gains tax. He also claimed to have under-claimed his Additional Costs Allowance (ACA) by approximately £40,000 over five years, demonstrating an effort to work within parliamentary rules and avoid extravagant claims.
Correspondence revealed a strained relationship with the Commons Fees Office. In one letter dated December 2005, Burnham expressed urgency for payment, stating, "Otherwise, I might be in line for divorce!" His wife also corresponded with the authorities regarding renovations, noting missing invoices.
Burnham's claims were not without challenges. He was reportedly denied a claim for mortgage interest on both his London flat and his constituency home simultaneously. Another claim for mortgage capital, rather than interest, was also disallowed. Even a £119 receipt from Ikea faced scrutiny, with a £19.99 bath robe being rejected.
Following the 2009 revelations, a spokesman for Burnham maintained that his use of the payout enabled him to avoid further expense claims, thereby saving taxpayer money. The spokesman argued that any other course of action would have been a waste of public funds and that Burnham received no personal gain.
Figures indicate that Burnham claimed £10,700 in 2010-11 for accommodation, including mortgage interest, before rules changed. In the following year, under a revised scheme, he was reimbursed £14,499 for rent by the Independent Parliamentary Standards Authority (IPSA), along with council tax. By 2017, his rent claims had risen to £18,214.
Former Labour MP Simon Danczuk commented on Burnham's past residency at Dolphin Square, noting that Burnham received a substantial sum upon vacating the property. Danczuk suggested that the funds facilitated the purchase and renovation of another London flat, questioning Burnham's current emphasis on living in the North.
Burnham, who served as Culture Secretary at the time the story first broke, insisted he claimed less than he was entitled to and did not knowingly misuse public funds. A spokesman for Burnham stated that his actions saved public money and prevented personal gain.