Labour MP Perran Moon suspended over £50,000 Covid loan row

Perran Moon, the Labour MP for Camborne & Redruth, has been suspended from the party after questions over a £50,000 taxpayer-backed Covid loan taken by a company he co-owns.

GB News understands the MP voluntarily referred himself for a full investigation. He is the second Labour MP caught in this storm. In August, Bayo Alaba was suspended over whether he tried to avoid repaying a similar taxpayer-funded Covid loan.

Mr Moon is co-owner of training firm Autoswot Limited, founded in 2019. Company accounts from June 2020 show loans of £50,000. In November 2022 there was an attempt to wind up the organisation. That bid was later blocked by an opposing body.

Throughout the pandemic the Government ran a dissolution objections process to stop firms misusing bounceback loans. Borrowers were blocked from dodging repayments by dissolving companies and striking off outstanding debts. It is understood Mr Moon approached Companies House after the firm applied to be struck off. The department confirmed on three occasions that the accounts were not required.

Mr Moon said: “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.”

Taxpayers stumped up billions to keep firms alive. When an MP’s company takes the cash, stops trading and faces questions over winding-up attempts, the public is entitled to hard answers, not warm words. Standards matter more when the money is not your own.

A Labour Party spokesman said the MP had referred himself so the matters could be investigated in line with party rules, that Labour expects the highest standards from elected representatives, and that robust processes are in place. The party would not comment further while the investigation continues.

Second suspension raises the stakes

This is not an isolated case. Bayo Alaba’s earlier suspension set the pattern. Now another Labour backbencher is under the same cloud. The bounceback scheme was meant to save jobs, not leave the taxpayer chasing ghosts after firms fold.

Mr Moon insists the loan was taken in good faith, repayments were made until trading stopped, and professional advice was sought throughout. He says he will hand over documents to prove the turnover forecasts were accurate. The party process will test those claims. Constituents in Camborne & Redruth will watch closely while their MP carries on the day job under investigation.

Labour came to power promising clean government and tight control of public money. Two MPs suspended over the same class of taxpayer loan in short order will test that promise. The investigation must be swift, open and complete. Anything less will look like another free pass for those who spent other people’s cash when the country was locked down.

Original source: GB News