Rayner Accused of Dodging Probe into Burnham's £55M Homes Loans to Man City Owner

Angela Rayner is reportedly facing accusations of failing to investigate potentially "favourable" loans totaling £55 million made by Andy Burnham to the owners of Manchester City. A Manchester-based property developer has urged the Housing Secretary to examine the housing project loans provided to the Abu Dhabi United Group (ADUG).

According to a private letter seen by The Mail on Sunday, the developers questioned the substantial loan amount to ADUG, noting the absence of any requirement to build much-needed affordable homes in the region. The letter also alleged that "no due diligence" was conducted on the loans, which were issued in 2017 by the Greater Manchester Combined Authority (GMCA) when Andy Burnham served as Mayor.

Prime Minister Rishi Sunak is facing mounting pressure regarding his connections to ADUG, owned by Sheikh Mansour, the deputy prime minister of the United Arab Emirates. This scrutiny comes as questions are being raised about the nature of the loans made to ADUG during Burnham's tenure as Mayor. Reports indicate that Burnham met with Manchester City officials at least six times while Mayor, a higher frequency than he had previously stated.

The developers who contacted Rayner expressed concerns that the loans may have been issued at "favourable" rates, though the specific interest rates remain undisclosed. Despite receiving this request for investigation last month, Rayner has not yet issued a public statement. Conservative Party chairman Kevin Hollinrake suggested that Rayner's inaction could be due to a "clear conflict of interest," given her past support for Burnham and his role in her appointment to the Cabinet.

"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," Hollinrake stated. "Developers raised serious concerns with her department more than a month ago and have heard nothing. If the PM has nothing to hide, he should welcome a proper independent investigation."

According to the letter addressed to Rayner, by March of this year, the loans to ADUG constituted 97 percent of a taxpayer-funded investment scheme intended for developers in Manchester. These £55 million loans were allocated for the construction of thousands of new homes in East Manchester.

M anchester City was recently found by an independent Premier League commission to have breached financial rules between 2009 and 2018, including the creation of "sham contracts" to inflate sponsorship deals. The Prime Minister drew criticism for his comment that he would be "really concerned" if Sheikh Mansour's investment were to be lost.

The GMCA has denied any wrongdoing, stating that "every penny loaned from the fund is being fully repaid, delivering billions of pounds worth of development at no cost to the taxpayer." The Ministry of Housing, Communities and Local Government declined to comment. ADUG stated that they invested their own capital in projects before accessing loans, and all loans have been fully repaid.