Labour MP Perran Moon suspended over Covid loan repayment investigation

Labour MP Perran Moon has been suspended after he voluntarily referred himself to the party’s investigation over the repayment of a Covid-era Bounce Back loan taken out by a company he co‑directed. Moon, who represents Camborne and Redruth, is listed as a co‑director of Autoswot Ltd, a training firm that last filed accounts in June 2021 and ceased trading in late 2022. The suspension follows a similar case earlier this year when MP Bayo Alaba was also suspended amid questions about his own pandemic loan.

The Bounce Back Loan scheme, launched in May 2020, offered up to £50,000 to small businesses with a full government guarantee, disbursing a total of £46 billion. A later report by the Covid counter‑fraud commissioner estimated that up to £2.8 billion of the scheme’s funds were lost to fraud and error. Autoswot was set up in June 2019, a year before the scheme began, and projected revenues of more than £200,000 at that time. Moon says he applied for the maximum loan within the rules, used the money for staffing and essential costs, and made partial repayments before the business folded. He also claims Companies House incorrectly assured him that no further accounts were required after the company applied to be struck off.

Moon, first elected in the 2024 Labour landslide after a career in communications and marketing, insists the loan application was made in good faith and that the information provided was accurate. He has pledged to cooperate fully with the Labour Party’s internal probe and to continue representing his constituents while the process unfolds. A Labour spokesperson confirmed Moon’s self‑referral and reiterated the party’s expectation of high standards from its elected officials, adding that no further comment could be made while the investigation is ongoing.

The case adds to mounting scrutiny of the Bounce Back Loan programme, already under fire for its alleged misuse by several MPs. If the investigation finds breaches of party rules or the law, Moon could face further disciplinary action, including possible expulsion from Labour. The episode also fuels broader calls for tighter oversight of government emergency financing to prevent future abuse and protect taxpayers’ money.