Second Labour MP suspended amid questions over £50,000 taxpayer-backed Covid loan

Back in August, fellow Labour MP Bayo Alaba was suspended from the party over questions surrounding whether he tried to avoid repaying a taxpayer-funded Covid loan.

Now, Mr Moon is the co-owner of training company Autoswot Limited, which was founded in 2019.

Throughout the pandemic, the Government introduced a “dissolution objections process” in a bid to prevent firms from misusing bounceback loans.

Under such a process, borrowers were blocked from dodging repayments by dissolving their companies – which then struck off any outstanding loans.

Mr Moon has confirmed his firm took out a loan, with its accounts from June 2020 showing loans of £50,000.

And, in November 2022, there was an attempt to wind up the organisation, a bid which was later blocked by an opposing body.

It is understood the MP approached Companies House after the firm applied to be struck off, with the department confirming 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.”

A Labour Party spokesman 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.”