Appeal dismissed over GMCA’s Renaker loans
Summary
The Court of Appeal has upheld the Competition Appeal Tribunal’s finding that Greater Manchester Combined Authority’s loans to Renaker-owned special purpose vehicles were not unlawful subsidies under the Subsidy Control Act 2022. While the judges said some criticisms of GMCA’s interest-rate and due-diligence approach had merit, those issues were outside the scope of the appeal and would need to be pursued through judicial review.
Why it matters
The case highlights how public-sector development finance, subsidy control and decision-making processes can be challenged, which is relevant to surveyors involved in viability, funding, and development appraisal. It also underlines the importance of transparent assumptions and documented rationale where public bodies support residential-led schemes.
Key points
- Court of Appeal upheld the CAT ruling that the loans were not a subsidy.
- Judges said process complaints would need to be raised by judicial review, not in the subsidy appeal.
- The court noted criticisms of GMCA’s interest-rate setting and due diligence had merit.
- The loans related to two Manchester skyscraper schemes with no on-site affordable housing.
- Weis is considering a Supreme Court appeal or judicial review.
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