Labour MP Suspended Over Covid Loan Repayments Following Self-Referral

According to the BBC UK, Perran Moon, the Member of Parliament for Camborne and Redruth, has been suspended subsequent to voluntarily referring himself for investigation regarding Covid loan repayments. Moon is listed on Companies House as a co-director of Autoswot, external, a training company whose accounts were last filed in June 2021.

Government Bounce Back Loans, which provided up to £50,000 to aid small businesses during the pandemic, were found by a government report to be susceptible to errors and fraud. The scheme saw the issuance of £46bn in bounce back loans when it was initiated in May 2020, making it the largest of the government's pandemic-era lending initiatives. These loans carried a 100% government guarantee, meaning taxpayer funds were designated to reimburse banks if the associated companies failed, though the Covid counter-fraud commissioner later estimated total fraud and error to the public purse at up to £2.8bn.

Autoswot was established in June 2019, a year prior to the loans becoming accessible, and at that time, the company had projected revenues exceeding £200,000. Moon stated that he applied for the maximum loan amount of £50,000 in adherence to the rules, and he regularly sought professional counsel regarding the loan's obligations. He also indicated his willingness to furnish documentation to the Labour Party's inquiry into the matter.

Moon explained that the loan was utilized to cover "staffing and other essential business costs" throughout the pandemic, and that partial repayments were made until the company ceased operations in late 2022. The BBC reported that Moon received written assurances from Companies House on multiple occasions that no accounts needed to be filed after the company applied to be struck off, but this guidance was reportedly incorrect.

Moon, who was first elected in the 2024 Labour landslide following a background in communications and marketing, stated that the business closed due to unforeseen external market pressures and "despite the best efforts of staff." He confirmed that he had voluntarily referred himself to the Labour Party's investigation process to have these matters examined and pledged full cooperation with the process.

A Labour Party spokesperson confirmed that Moon had referred himself for investigation. The spokesperson stated that the Labour Party maintains high standards for its elected representatives and possesses established procedures to uphold those standards, adding that they could not provide further comment while the investigation was active.

This marks the second investigation initiated by the Labour Party concerning these loans. Bayo Alaba, the MP for Southend East and Rochford, also referred himself for investigation regarding loans provided to a real estate company named Alaba Properties. At that time, Alaba asserted that there had been no attempt to evade his financial responsibilities and expressed his commitment to meeting the liability in full.

James McMurdock, who now serves as an independent, was the first MP to be questioned concerning bounce back loans totaling £70,000 given to two fitness companies. In 2025, McMurdock maintained that all his business dealings were compliant with the rules, and after obtaining "specialist legal advice," he decided to continue his parliamentary career as an independent MP.