Labour suspended Perran Moon, MP for Camborne and Redruth, on 20 October 2026 after he voluntarily referred himself to the party's investigations process. The Labour Whip is suspended during the probe, which the Independent describes as precautionary.
Moon is accused of trying to wind up Autoswot Ltd in November 2022 without repaying a bounce back loan of up to £50,000. Companies House shows the company's accounts overdue since 2022, with a proposal to strike it off.
Moon says the company fully intended to repay the loan, made repayments until it ceased trading in late 2022, and applied in good faith with an accurate turnover forecast of more than £200,000.
Bayo Alaba, MP for Southend East and Rochford, was suspended in August after queries about a Covid-era loan, according to the BBC.
Labour has suspended Perran Moon, the MP for Camborne and Redruth, after he voluntarily referred himself to the party's investigations process. The Independent reports that the suspension is administrative and precautionary, carries no finding of wrongdoing at this stage, and includes the Labour Whip while the investigation runs. Moon was first elected in the 2024 Labour landslide after a career in communications and marketing. The BBC reported the suspension on 20 October 2026.
“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 is accused of trying to wind up his company in November 2022 without repaying a bounce back loan, according to reports. The scheme let small businesses borrow up to £50,000 during the pandemic, and Moon says he applied for the maximum amount. The company is Autoswot Ltd, a training firm that Companies House lists him as co-director of. It was set up in June 2019, a year before the loans became available, and at that time forecast revenues of more than £200,000. It last filed accounts in June 2021, and the Independent reports its accounts have been overdue since 2022, with an active proposal to strike it off.
The BBC understands that Moon was repeatedly assured in writing by Companies House that no accounts were needed after the company applied to be struck off, but that guidance was incorrect. The bounce back scheme launched in May 2020 with loans worth a total of £46bn, each backed by a 100% government guarantee. The Covid counter-fraud commissioner later estimated total fraud and error at up to £2.8bn.
Moon told the BBC that the loan paid for staffing and other essential business costs during the pandemic. He said partial repayments were made until the company stopped trading in late 2022, which he blamed on unforeseen external market pressures and the efforts of staff. He maintains the loan application was made in good faith and that the turnover forecast was accurate and properly based, and he has promised to provide documents to the party's process.
“When the company took out the loan, it fully intended to repay it, and it made repayments until it ceased trading.”
Moon said he regularly sought professional advice about the company's statutory obligations and takes them seriously as a director. He also said he would keep working for his constituents while the party process runs.
Moon is the second Labour MP to face suspension over a Covid-era loan this year. The BBC reports that Bayo Alaba, the MP for Southend East and Rochford, was suspended in August after queries about a Covid loan. The Independent notes that it is unclear how similar the precise circumstances of the two cases are. The BBC also says a third MP, James McMurdock, quit Reform in 2025 after questions about his eligibility for loans he received.
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Labour has suspended Camborne and Redruth MP Perran Moon after he referred himself to the party's investigations process. The probe concerns a bounce back loan of up to £50,000 taken by Autoswot Ltd, a company he is listed as co-director of.
AI text based on reports by The Guardian, The Telegraph, inews.co.uk and other publishers. Published .