The £140m Loan Deal:A Challenge to Burnham's Judgment

The Court of Appeal has heard claims that Andy Burnham's £140 million loan deal with developer Renaker was unlawful , with lawyers arguing that the GMCA failed to conduct proper due diligence and ignored inconsistent viability reports.

The loans were granted despite the mayor being made aware of conflicting viability reports submitted by the developer, according to lawyers presenting the case.

The challenge comes just days before the crucial Makerfield by-election, where Burnham could potentially return to Parliament and launch a Labour leadership bid.

Renaker's Inconsistent Viability Reports

Lawyers representing Aubrey Weis, the city-centre landowner who challenged the loan deal , argued that Renaker's owner, Daren Whitaker, submitted conflicting viability reports to secure more favourable loan terms.

Initially, Whitaker told Manchester City Council that his projects were so high risk they should be exempt from affordable housing obligations, which was accepted.

However, he later told the GMCA that the developments were low risk and hihgly profitable to secure loans at a modest interest rate.

The GMCA's Response: A Full Due Diligence Process

The GMCA, represented by Aidan Robertson KC, countered that a full due diligence process was undertaken and that the loans were scrutinized by experienced investment teams and committees.

Robertson argued that the tribunal made no error of law and that the differing submissions by Renaker were for separate purposes.

Significant Political Implications

The decision is expected to have significant political implications, with Burnham campaigning in Ashton-in-Makerfield ahead of the by-election.

The outcome of the appeal hearing could potentially impact Burnham's chances of returning to Parliament and launching a Labour leadership bid.