A second Labour MP has been suspended from the party pending an investigation into taxpayer-funded COVID-19 business loans. Perran Moon, the MP for Camborne and Redruth, has voluntarily referred himself to Labour Party officials after questions were raised about emergency finance taken out by a former business he co-owns.
Companies House records indicate that Moon is a co-owner of Autoswot Limited, an online training company established in 2019. The business reportedly received £50,000, the maximum amount available under the Bounce Back Loan Scheme, during the pandemic. An attempt was made to wind up the company in November 2022.
Moon stated that the company applied for the loan to cover staffing and other essential costs during the pandemic. He explained that while the business began repaying the loan, it ceased trading in late 2022 due to unforeseen market pressures and despite staff efforts. He asserted that the loan was applied for in good faith, with accurate turnover forecasts, and that repayments were made until the company ceased trading. Moon added that he has sought professional advice regarding the company's statutory obligations and takes them seriously.
He will cooperate fully with the Labour Party's investigation process and will provide documentation to support his statements. Moon affirmed he would continue representing his constituents while the process is ongoing.
This development follows a similar case in August, when Bayo Alaba, the MP for Southend East and Rochford, referred himself to party officials amid queries about a COVID-era loan for one of his businesses. Reports indicated Alaba had attempted to wind up a business before settling one of two bounce back loans he had taken out, and is now repaying both.
A Labour Party spokesperson confirmed Moon's self-referral for investigation in line with party rules. The spokesperson emphasized the party's expectation of high standards from elected representatives and its robust processes for upholding them, adding that further comment would not be made while the investigation is active.