Officials have confirmed the quarter-of-a-million pound loan, given in 2023 without any collateral, is not ‘expected’ to be repaid after the Chamber of Commerce entered administration earlier this yearThe Chamber was Britain’s largest, and used to host major politicians like then-Tory Chancellor George Osbourne(Image: Manchester Evening News)

Andy Burnham’s office lost £250,000 in an ‘unsecured loan’ to the Greater Manchester Chamber of Commerce when it entered administration, officials have confirmed.

In June 2023, a meeting chaired by the mayor, attended by the city’s 10 council leaders at the time, authorised the Greater Manchester Combined Authority (GMCA) to give the Chamber of Commerce (GMCC) the £250,000 loan.

However, it has since been confirmed by administrators the loan was given after the Chamber made a £299,000 loss a year previously.

An administrators’ report said: “GMCC has been loss making for several years and had an unsecured loan from Greater Manchester Combined Authority.”

An unsecured loan is one given without the borrower putting up collateral, like an asset, meaning lenders usually approve them based on the borrower’s creditworthiness.

The Chamber, Britain’s largest, entered administration earlier this year with debts in excess of £1.6m, owing nearly £180,000 in tax and more than half-a-million pounds to its former Deansgate landlord. The GMCA is one of its larger creditors.

A spokesperson for the GMCA said on Wednesday (November 19) it ‘does not expect’ to recover the money, but committed to support the Chamber which was rescued with a new company taking on some of its functions.

They told the Local Democracy Reporting Service: “At this stage we do not expect the loan to be repaid, but the Chamber will continue to play an important role in supporting the growth of Greater Manchester businesses and our wider economy.”

Andy Burnham chaired the meeting where local leaders agreed to allow GMCA officers to give the loan(Image: Kenny Brown | Manchester Evening News)

An administrator’s proposal to resolve the Chamber’s financial crisis from September revealed the organisation lost £299,000 in the financial year ending in 2022, and £641,000 in the financial year which ended two months before loan was approved.

But the GMCA has defended its decision to lend money to the ailing Chamber. A spokesperson added: “In early 2023, the GMCA provided a loan to the GM Chamber of Commerce. When the loan application was assessed, consideration was given to its previous financial performance and other business factors.

“The Chamber had previously repaid a GMCA loan in full and had a plan to grow revenue. Given its important role in supporting thousands of businesses across Greater Manchester, the loan was approved.

“In 2024, the Chamber’s revenues did grow as planned, but it also faced rising costs. In January 2025, the GMCA therefore agreed to delay repayment until the Chamber’s finances were stable again. Unfortunately, the Chamber’s finances did not recover as hoped and earlier this autumn it went into administration.”

Administrators said the Chamber moved into Elliot House, on Deansgate, in 2014, but increased the space it rented to host conferences and meetings just before the pandemic — but ‘changes in working patterns’ meant ‘demand… did not meet the company’s expectations’.

Bad results in 2022 and 2023 were followed by another £545,000 loss last year, they added. The Chamber now lives on as a phoenix company, Greater Manchester Chamber of Commerce 2025, which purchased some of the ‘old’ company’s assets for £50,000.

Greater Manchester Chamber of Commerce 2025 and administrators ArmstrongWatson declined to comment.