Labour suspends second MP over Covid loan repayments

Labour MP Perran Moon has been suspended from the party while it investigates his Covid-era loan repayments, after he referred himself for an inquiry.

Moon, who represents Camborne and Redruth, was a co-director of Autoswot, a training company that received a £50,000 government-backed Bounce Back Loan. He says the loan was applied for in good faith and within the rules, and that the money paid for staffing and other essential business costs during the pandemic. The company made partial repayments before it stopped trading in late 2022. [1]

Moon said he would provide documents to the party’s investigation and co-operate fully. He also said the company’s turnover forecast was accurate and properly based. Labour said it could not comment further while the inquiry was under way. [1]

The BBC reports that Companies House repeatedly told Moon in writing that Autoswot did not need to file accounts after applying to be struck off, but that the guidance was incorrect. The company last filed accounts in June 2021. [1]

Moon’s case is the second Labour investigation into an MP over pandemic loan repayments. Bayo Alaba, MP for Southend East and Rochford, also referred himself for investigation after questions about a loan to his property company. He said there had been no attempt to avoid his financial obligations and that he was committed to meeting the liability in full. [1]

The loans were introduced in May 2020 to support small businesses, with borrowing of up to £50,000 and a 100% government guarantee to lenders. The scheme issued £46bn in loans; a later estimate put fraud and error at up to £2.8bn. [1]

A third MP, James McMurdock, left Reform in 2025 after questions about £70,000 in loans to two fitness companies. He said his business dealings complied with the rules and that he would continue as an independent MP. [1]