Andy Burnham defends fund accused of 'subsidising' developer giant in legal case

Andy Burnham has defended the housing fund the Greater Manchester Combined Authority (GMCA) is being sued over for allegedly ‘subsidising’ a giant developer.

The GMCA, which the mayor heads up, is subject to legal action from major city centre landowner Aubrey Weis. Mr Weis claims loans from the GMCA ‘have distorted the operation of the market for property investment and developments services in Manchester’.

Specifically, he alleges two loans worth nearly £140 million given to special purpose vehicle companies owned by developers Renaker breach the Subsidy Control Act 2022. His Notice of Appeal added: “The [GMCA] approved a £70.8 million and £69.2 million loan to Trinity and Jackson respectively as part of the Greater Manchester Housing Investment Loan Fund (HILF).

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“[Mr Weis] challenges the decision to make the loans and / or to do so at the proposed rate of interest and / or on the proposed commercial terms.

“[Mr Weis] is concerned that the loans have distorted the operation of the market for property investment and developments services in Manchester, enabling Trinity and Jackson to undertake projects they could not otherwise perform at a lower cost than would otherwise be the case and / or providing them with a competitive advantage relative to private competitors.”

Now, Mr Burnham has dismissed the idea the HILF was designed to lend money to developers cheaply. Speaking at a GMCA scrutiny meeting on Wednesday (October 23), he said: “The reason why [it was created] is not because loans are not being done at commercial rates; it’s done very rigorously and properly.

“There has been not one default. They