Second Labour MP suspended over Covid loan repayments
Labour MP Perran Moon refers himself for investigation regarding a £50,000 Covid-19 bounce back loan linked to training firm Autoswot.
Stock photo for illustration only, not from the actual event
- Labour MP Perran Moon has been suspended over Covid loan issues
- Moon voluntarily referred himself to the party's investigation process
- His former training company Autoswot secured a £50,000 bounce back loan
- The wider UK loan scheme issued a total of £46bn during the pandemic
A second Labour MP, Perran Moon, has been suspended over Covid loan repayments after taking the step to voluntarily refer himself for an internal party investigation.
Moon, who represents Camborne and Redruth, is listed in Companies House records as a former co-director of a training company called Autoswot. The business was established in June 2019 and last filed its accounts in June 2021 before ceasing operations in late 2022 due to unexpected market pressures.
Government-backed Bounce Back Loans of up to £50,000 were introduced in May 2020 to support small enterprises through the pandemic. Valued at £46bn overall, it became the largest government loan initiative of the crisis era, featuring a 100% state guarantee that required taxpayers to cover bank losses if businesses defaulted. A later review by the Covid counter-fraud commissioner estimated total public sector losses from fraud and error at up to £2.8bn.
Moon maintained that he applied for the maximum £50,000 loan in adherence to the rules, sought professional guidance regarding obligations, and utilized the funds for essential staffing and operational costs. He also noted that Companies House repeatedly gave incorrect written assurances that no further accounts needed to be filed after the company applied to be struck off.
"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."
Perran Moon
The ongoing scrutiny surrounding pandemic bounce back loans highlights the delicate balance between rapid economic emergency relief and strict accountability. Because the UK government prioritized speed during the pandemic, oversight mechanisms were less stringent, leaving loan recipients open to long-term regulatory and political audits regarding eligibility and business closures.
This marks the second internal investigation initiated by the Labour Party into pandemic-era loans. In August, Southend East and Rochford MP Bayo Alaba similarly referred himself over loans tied to a real estate firm. Meanwhile, James McMurdock faced separate questions regarding £70,000 in loans issued to two fitness companies before sitting as an independent MP.
Source: BBC Politics
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