How Burnham Spent £16k of Taxpayers' Money on a London Flat

Andy Burnham’s Complex Relationship with Parliamentary Expenses

Andy Burnham, a prominent figure in British politics, is known for his deep connection to the north of England. It is reported that he plans to continue residing there even if he becomes Prime Minister, rejecting the traditional grace-and-favour flat in Downing Street. However, his history with public funds and living arrangements in London reveals a more complex narrative.

During his first term as a Labour MP, Burnham claimed expenses for renting a luxury flat near Westminster. This was in an infamous apartment complex called Dolphin Square, which was known for housing not only politicians but also spies and prostitutes. When the building was sold in 2005, residents were offered substantial sums to vacate their tenancies. While many MPs returned the money to the parliamentary authorities, Burnham negotiated a unique deal that allowed him to keep nearly all of his £18,200 windfall.

This arrangement enabled Burnham and his wife, Marie-France Van Heel, to purchase and renovate a £215,000 flat in south London—using taxpayer money. The details came to light during the 2009 MPs' expenses scandal when it was revealed that Burnham submitted a single expenses claim for £16,644 to cover the purchase of the property. This included stamp duty, legal fees, and a new kitchen.

Burnham insisted at the time that he had not attempted to avoid capital gains tax. He stated, "It is complete nonsense to suggest that I set out to avoid capital gains tax. My file shows I made arrangements to pay over this money in full to the fees office, and all arrangements were signed off by them. At no stage did I make any personal profit on this transaction."

Despite this, Burnham had a strained relationship with the Commons Fees Office, which approved MPs’ costs for their second homes. Many of his claims were delayed or rejected. In one letter dated December 2005, he wrote, "I would be very grateful if [the expenses] could be paid in the last round of the year on Friday. Otherwise, I might be in line for divorce!" His wife even joined the correspondence about their renovations, writing, "I have endeavoured to include the bulk of the invoices but invariably there are a few missing."

Burnham faced challenges with his expense claims, including being knocked back for claiming both mortgage interest on his Lambeth flat and his north-west constituency home. He also submitted an ineligible claim for mortgage capital instead of interest. A £119 receipt from Ikea was reduced after a claim for a £19.99 bath robe was rejected.

When the scandal broke, Burnham, who was then Culture Secretary, insisted that he had actually claimed less than he could have done on his expenses. He stated, "I wish to make it clear in the strongest possible terms that I resent any suggestion that I have knowingly misused public funds as the public record shows that, in the last five years, I have under-claimed on my ACA by around £40,000." He added, "I believe this demonstrates quite clearly that I have always sought to work within the rules and the spirit of the parliamentary Green Book, and, during my time in Parliament, have not made claims for expenditure that is either extravagant or luxurious."

A year later, Burnham faced pressure to repay his Dolphin Square windfall after the Commons sleaze watchdog found that other MPs had broken rules by pocketing theirs. Four Lib Dems were ordered to pay back some of the money. However, a spokesman for Burnham claimed his use of the payout "enabled him to avoid making claims on expenses and saved thousands of pounds for the taxpayer."

Figures published by the MPs' pay body show that Burnham claimed £10,700 in 2010-11 for accommodation, including £6,802 for mortgage interest before the rules were changed. Under the revised scheme, he was reimbursed £14,499 for rent by the Independent Parliamentary Standards Authority (IPSA) the following year, along with £1,100 for council tax. By 2017, when he stepped down, his rent had increased to £18,214.

Simon Danczuk, a former Labour MP who wrote a book about the notorious history of Dolphin Square, told the Daily Mail: "It's surprising Burnham now wants to spend time in Manchester; for years he enjoyed living at the infamous Dolphin Square in SW1, home to a variety of politicians, spies, and prostitutes. Indeed, when the apartment block was sold in 2005 Burnham, although his rent had been paid by the taxpayer, received a personal jackpot of £18,200 from the new landlord on agreeing to depart the complex."

He continued: "This only came to light when exposed in the 2009 expenses scandal. By all accounts, Burnham's windfall became a bone of contention with the House of Parliament's fees office, though after having had his claim rejected three times, over several months, they eventually relented. The money went towards the purchase and renovation of another London flat for Burnham. For all his recent reluctance to spend time in London, it's not that long ago Burnham was living it up here and enjoying playing its property market."

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