Second Labour MP suspended amid questions over taxpayer-funded Covid business loans

A second Labour MP has been suspended amid concerns about the repayment of taxpayer-funded Covid business loans.

Perran Moon, the MP for Camborne and Redruth, is understood to have lost the Labour whip in the House of Commons while an investigation takes place.

It comes after he voluntarily referred himself to party officials so that questions about emergency finance taken out by his former business can be looked into.

Companies House records show that Mr Moon is the co-owner of Autoswot Limited, an online training company set up in 2019.

The business is reported to have taken out loans of £50,000 during the Covid pandemic, the maximum amount possible under the scheme.

In November 2022, an attempt was then made to wind up the company.

Mr Moon said in a statement: 'A company which I co-own had successfully applied for a bounce back loan to help with staffing and other essential business costs during the significant turbulence of the Covid pandemic.

'The business began to repay this loan, however due to unforeseen external market pressures and despite the best efforts of staff, it ceased trading in late 2022.

'When the company took out the loan, it fully intended to repay it, and it made repayments until it ceased trading.

'The company has regularly sought professional advice with regards to our statutory obligations and as a director I take these obligations seriously.

'In order for these matters to be looked into, I have voluntarily referred myself to the Labour Party's investigations process and will cooperate fully with this process.

'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.

'I will continue to work hard every day representing my constituents while this party process is ongoing.'

Mr Moon is the second Labour MP to be suspended while facing questions about taxpayer-funded Covid business loans.

In August, it was revealed that Bayo Alaba, the MP for Southend East and Rochford, had referred himself to party officials for investigation.

It came after a newspaper approached him with queries about a Covid-era loan given to one of his businesses.

The Times reported that he attempted to wind up one of his businesses before settling one of two bounce back loans he took out. It also said he is now repaying both loans.

A Labour Party spokesperson said: 'Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the party's rules.

'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.'