Labour MP Perran Moon suspended over Covid Bounce Back Loan repayment investigation

Perran Moon, MP for Camborne and Redruth, has been suspended by the Labour Party following his voluntary referral for investigation into Covid Bounce Back Loan repayments.

Moon is listed on Companies House as co-director of a training company, Autoswot, which last filed accounts in June 2021.

Government Bounce Back Loans, available up to £50,000, were introduced to support small businesses during the pandemic, though a government report found the scheme vulnerable to fraud and error.

Moon’s suspension follows that of Labour MP Bayo Alaba in August, who was also investigated over a Covid-era loan, and the decision by former Reform MP James McMurdock to step down in 2025 amid eligibility questions.

When the scheme launched in May 2020, a total of £46bn in Bounce Back Loans were issued, making it the largest of the government’s pandemic-era lending programmes.

Each loan carried a 100% government guarantee, meaning taxpayers would cover repayments if companies failed, with the Covid counter-fraud commissioner estimating total fraud and error at up to £2.8bn to the public purse.

Autoswot was established in June 2019, a year before loans became available, and originally forecast revenues exceeding £200,000.

Moon stated he applied for the maximum £50,000 within the rules, sought professional advice on his obligations, and will cooperate fully with the Labour Party investigation.

He said the loan was used for “staffing and other essential business costs” during the pandemic, with partial repayments made before the company ceased trading in late 2022.

The BBC reports that Moon was repeatedly assured in writing by Companies House that no accounts needed to be filed after the company applied to be struck off, though that guidance proved incorrect.

Moon, first elected in the 2024 Labour landslide after a career in communications and marketing, said the business folded due to “unforeseen external market pressures” despite the best efforts of staff.

“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,” Moon said.

“The loan application was made in good faith, and the information provided, including the company’s turnover forecast, was accurate and properly based,” he added.

“I will continue to work hard every day representing my constituents while this party process is ongoing,” Moon stated.

A Labour Party spokesperson confirmed Moon’s referral for investigation, stating: “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,” the spokesperson said.

This marks the second Labour Party investigation into Bounce Back Loans, following Alaba’s referral over loans to his real estate company, Alaba Properties.

At the time, Alaba said: “There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full.”

McMurdock, who now sits as an independent MP, was the first parliamentary figure questioned over Bounce Back Loans granted to two fitness companies worth £70,000.

“In 2025, McMurdock said all his business dealings had been compliant with the rules, adding that after taking ‘specialist legal advice’ he had decided to continue his parliamentary career as an independent MP,” the report notes.

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