Second Labour MP suspended over Covid loan repayments
Perran Moon, MP for Camborne and Redruth, voluntarily referred himself for investigation.
A second Labour MP, Perran Moon, has been suspended from the party over investigations into Covid loan repayments. Moon, representing the constituency of Camborne and Redruth, voluntarily referred himself to the Labour Party's investigation process. The government's Bounce Back Loans, which provided up to £50,000 to small businesses during the pandemic, were found to be susceptible to fraud and error.
Previous Labour MP Bayo Alaba was also suspended after questions arose about a Covid-era loan, and Reform MP James McMurdock resigned in 2025 citing concerns about eligibility for loans he received. The Bounce Back Loans, totaling £46 billion, were the largest of the government's pandemic-era loan schemes and came with a 100% government guarantee, meaning taxpayers' money was used to repay banks if the companies failed.
Despite the company's forecasted revenues exceeding £200,000, Moon's Autoswot training business ceased trading in late 2022. Moon stressed he had applied for the maximum loan within the rules, sought professional advice, and would provide documents to the Labour Party's investigation. He stated the loan was used for staffing and other essential business costs during the pandemic, with partial repayments made until the company's closure.
Moon's suspension comes as Labour's second investigation into the loans, following the case of Alaba, who also referred himself for investigation over loans made to a real estate company.
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