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

Housing Secretary Angela Rayner has been accused of refusing to investigate potentially favorable loans amounting to £55 million that were provided to the owners of Manchester City by Andy Burnham during his tenure as Mayor of Greater Manchester.

A Manchester-based property developer has urged Rayner, the relevant Cabinet minister, to scrutinize the housing project loans made to the Abu Dhabi United Group (ADUG). The developer's private letter, seen by The Mail on Sunday, questions the allocation of such a significant sum to ADUG without a requirement for building affordable homes, which are in high demand in the area.

The developers also claim that "no due diligence" was conducted on the loans, which were issued in 2017 by the Greater Manchester Combined Authority (GMCA), then under Burnham's leadership. Concerns have been raised about the nature of these loans, particularly in light of recent revelations about Prime Minister's dealings with ADUG's owner, Sheikh Mansour.

This situation comes as the Prime Minister faces increasing pressure regarding his connections with ADUG, owned by Sheikh Mansour, who is also the deputy prime minister of the United Arab Emirates. Previously, it was reported that Burnham had met with Manchester City officials at least six times as Mayor, contradicting his earlier statement of only having one "significant" meeting.

During Prime Minister's Questions, the PM stated that the club's owners had not discussed fraud charges against Manchester City with him and expressed willingness for all dealings to be fully disclosed.

According to the letter sent to Rayner last month, by March of this year, the loans to ADUG constituted 97 percent of a taxpayer-funded investment scheme aimed at encouraging developers in Manchester. These £55 million loans were intended for the construction of thousands of new homes in east Manchester.

Last month, an independent Premier League commission found Manchester City guilty of breaching financial rules between 2009 and 2018 and creating "sham contracts" to inflate sponsorship deals by £830 million. Following this verdict, the Prime Minister faced criticism for expressing concern about the potential loss of Sheikh Mansour's investment.

Conservative party chairman Kevin Hollinrake suggested that Rayner's inaction stems from a "clear conflict of interest," as she is being asked to investigate deals made by an individual who supported her and appointed her to her current Cabinet position. He stated that developers raised serious concerns with her department over a month ago without receiving a response. Hollinrake asserted that if the Prime Minister has nothing to hide, he should support a proper independent investigation.

Katie Lam, Tory local government spokesman, commented that the "chumocracy" at the core of Burnham's dealings in Manchester requires proper scrutiny rather than political protection, and that Rayner should prioritize the public interest over party loyalty.

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 confirmed that it had invested its own capital into projects before accessing loans, and that all loans have been fully repaid.