Second Labour MP suspended over Covid-era loan repayments

The UK's Labour Party has suspended Perran Moon, the MP for Camborne and Redruth, over repayments of a Covid-era government-backed loan. Moon voluntarily referred himself for investigation, and he is the second Labour MP to be suspended over such loans.

What is at issue

Companies House, the UK company register, lists Moon as co-director of a training firm called Autoswot, which last filed accounts in June 2021. The company was set up in June 2019, a year before the loans became available, and at that point forecast revenues of more than £200,000.

Bounce Back Loans, of up to £50,000, were offered to small businesses during the pandemic. The scheme launched in May 2020 and issued £46bn in total. Each loan carried a 100% government guarantee, so taxpayers' money repaid the banks if firms failed. The Covid counter-fraud commissioner later estimated fraud and error at up to £2.8bn.

Moon's account

Moon says he applied for the maximum £50,000 within the rules and regularly sought professional advice. He says the money paid for staffing and other essential costs, and partial repayments were made until the company ceased trading in late 2022. He maintains the application was made in good faith and that the turnover forecast was accurate. The BBC understands Companies House repeatedly told him in writing that no accounts needed to be filed after the company applied to be struck off, but that guidance was wrong.

A Labour spokesperson confirmed that Moon referred himself and declined to comment further while the investigation continues.

Earlier cases

In August, Labour MP Bayo Alaba was suspended over loans made to a real estate company, Alaba Properties. James McMurdock quit the Reform party in 2025 after questions over loans of £70,000 to two fitness companies, and now sits as an independent.