The short version
- Perran Moon has been suspended from the Labour Party after voluntarily referring himself for investigation concerning a Bounce Back Loan received by his training company, Autoswot.
- The case follows the earlier suspension of fellow Labour MP Bayo Alaba and highlights ongoing concerns about fraud within the £46 billion loan scheme, which officials estimate suffered up to £2.8 billion in losses.
- Moon maintains that he applied for the maximum allowable amount in good faith, used funds for essential business costs, and was misled by incorrect guidance from Companies House regarding filing obligations.
Perran Moon, the Member of Parliament for Camborne and Redruth, has been suspended from the Labour Party following a self-referral for investigation into his receipt of a pandemic-era business loan. The suspension underscores growing political friction surrounding the Bounce Back Loan scheme, which provided rapid financial support to small enterprises during the coronavirus crisis but later faced intense scrutiny over widespread fraud and administrative errors.
Moon is listed as a co-director of Autoswot, a training company established in June 2019. The firm applied for the maximum loan amount of £50,000 when the scheme launched in May 2020. According to public records, the company last filed accounts in June 2021 and ceased trading in late 2022. Moon stated that the funds were utilized to cover staffing and other critical operational expenses during the pandemic period.
The controversy centers on compliance with reporting obligations and the timing of the company’s closure. Moon asserted that he sought professional advice regarding his duties and acted in good faith, noting that the turnover forecasts provided during the application were accurate. He further claimed that Companies House had repeatedly assured him in writing that no additional accounts needed to be filed after the company applied to be struck off, a piece of guidance he now says was incorrect.
This development marks the second time the Labour Party has suspended an MP over issues related to Bounce Back Loans. In August, Bayo Alaba, representing Southend East and Rochford, was suspended after raising questions about loans issued to his real estate entity, Alaba Properties. Alaba also referred himself for investigation, maintaining that he had not attempted to evade financial responsibilities and remained committed to settling the liability in full.
The broader context involves significant public concern over the integrity of the loan program. The scheme distributed a total of £46 billion, making it the largest government-backed pandemic support initiative. Because each loan carried a 100% government guarantee, taxpayers bore the risk if businesses failed to repay. A subsequent report by the Covid counter-fraud commissioner estimated that fraud and error cost the public purse up to £2.8 billion.
Moon’s case adds to a pattern of parliamentary scrutiny regarding these funds. James McMurdock, formerly of Reform UK, resigned from his party in 2025 after facing questions about eligibility for loans totaling £70,000 received by two fitness companies he owned. McMurdock later continued his parliamentary career as an independent, asserting that his business dealings complied with all relevant rules following specialist legal advice.
A Labour Party spokesperson confirmed that Moon had initiated the internal review process, emphasizing the party’s expectation of high ethical standards from its elected representatives. The organization stated it possesses robust mechanisms to uphold these standards but declined to comment further while the investigation remains active. Moon indicated he would cooperate fully with the inquiry.
Despite the suspension and ongoing probe, Moon affirmed his commitment to representing his constituents. He described the business failure as a result of unforeseen external market pressures rather than mismanagement or misconduct. The situation highlights the complex intersection of personal financial conduct, parliamentary privilege, and public accountability in the aftermath of the pandemic economic interventions.
As investigations proceed, the focus remains on determining whether procedural rules were breached or if administrative guidance contributed to compliance issues. The outcomes of these cases may influence future oversight mechanisms for government support schemes and set precedents for how political parties handle allegations involving their members’ financial dealings during crises.
Sources behind this briefing
Go to the original reporting
- BBC News↗Second Labour MP suspended over Covid loan repayments
