Labour MP suspended in Covid-era bounceback loan investigation
Perran Moon, the MP for Camborne and Redruth, referred himself for a probe
A Labour MP has been suspended from the party, while he faces an investigation about a taxpayer-funded Covid-19 business loan.
Perran Moon, the MP for Camborne and Redruth, referred himself for a probe by the Labour Party, over concerns about a Covid bounce-back loan.
He said his company, named by The Times newspaper as Autoswot Limited, “fully intended to repay” the loan, but ceased trading in late 2022 because of “unforeseen external market pressures and despite the best efforts of staff”.
Mr Moon is the second Labour MP to face questions from the party about such Covid-era loans.
Bounce=back loans, worth between £2,000 and £50,000, were given to small and medium-sized businesses during the pandemic, to help them through the cashflow turmoil, caused by the periods of lockdown.
The government introduced a process, to reduce misuse of the loans, which allowed it to object to companies being dissolved, while they still had outstanding debts.
According to The Times, an attempt was made to wind up Autoswot in November 2022, but this was blocked by a third party and no accounts have since been filed.
Mr Moon is understood to have written to Companies House, for guidance on whether he needed to file accounts while there was an attempt to block him from winding up the company and he was told there was not.
However, Mr Moon has since learned that guidance was incorrect and he is taking action to rectify this.
The MP 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 co-operate 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.”
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.”
Mr Moon is not the first Labour MP to have been suspended for investigation relating to Covid bounce-back loans.
In August, Bayo Alaba, the Labour MP for Southend East and Rochford, referred himself to the Labour Party for investigation, after the Times approached him with queries about a Covid-era loan given to one of his businesses.