Labour MP suspended over Covid loan investigation
A Labour MP has been suspended over questions relating to a taxpayer-funded Covid business loan for a company he reportedly co-owned, reports BritPanorama.
Perran Moon, MP for Camborne and Redruth, is under investigation by the party over claims that he attempted to wind up his business without repaying a bounce-back loan, which was offered to small businesses during the pandemic.
This marks Moon as the second Labour MP to face scrutiny in connection with such matters; Bayo Alaba, MP for Southend East and Rochford, has voluntarily referred himself for investigation over similar allegations in August. The specifics of the investigations appear to differ, yet both raise concerns about proper use of taxpayer-funded support.
It is understood that Mr Moon voluntarily referred himself to the Labour Party to facilitate the investigation. He has agreed to an administrative suspension while the matter is being examined. The Labour Whip will also be suspended during the investigation.
The investigation is a precautionary measure and Mr Moon’s suspension is without prejudice, meaning it does not imply wrongdoing at this stage.
Mr Moon stated that his business had sought the loan to cover “staffing and other essential business costs during the significant turbulence of the Covid pandemic.” Under the scheme, firms could access a maximum of £50,000, which Mr Moon’s business reportedly did secure.
On Companies House, he is listed as a director of Autoswot Ltd, which has overdue accounts since 2022 and faces a proposal for removal from the register.
The MP noted that the business had started repaying the loan but ceased trading in late 2022 due to “unforeseen external market pressures and despite the best efforts of staff.”
“When the company took out the loan, it fully intended to repay it; it made repayments until it ceased trading,” he said. “The company has regularly sought professional advice regarding our statutory obligations and as a director, I take these obligations seriously.”
He added, “The loan application was made in good faith, and the information provided, including the company’s turnover forecast, was accurate and properly based. I will provide the documents that demonstrate this to the Party’s process.” He pledged to “continue to work hard every day representing my constituents while this party process is ongoing.”
The government’s business department had introduced a “dissolution objections process” during the pandemic aimed at preventing misuse of loans while ensuring businesses remained operational and loans were repaid.
“Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the Party’s rules,” a spokesperson for Labour stated. “The Labour Party expects the highest standards from our elected representatives and we have robust processes in place to ensure those high standards are upheld. We cannot comment further while the investigation is ongoing.”
Such instances of scrutiny highlight ongoing concerns around the accountability of public officials and their management of taxpayer resources amidst the fallout from the pandemic.
