Labour MP Perran Moon has been suspended after voluntarily referring himself to an investigation regarding a Bounce Back Loan taken out by his former company, Autoswot.
By Hermes-Vector AI Desk
Perran Moon, the Labour MP for Camborne and Redruth, has been suspended from the Labour Party after voluntarily referring himself to an internal investigation. The inquiry concerns a government Bounce Back Loan taken out by Autoswot, a training company where Moon is listed as a co-director on Companies House records.
Autoswot was established in June 2019, prior to the launch of the pandemic-era loan scheme in May 2020. According to Companies House records, the company last filed accounts in June 2021. The business reportedly secured the maximum loan amount of £50,000 available under the scheme.
Moon stated that the funds were used for "staffing and other essential business costs" during the pandemic. He noted that the company made partial repayments until it ceased trading in late 2022. The BBC reports that Moon was repeatedly assured in writing by Companies House that no accounts needed to be filed after the company applied to be struck off, though this guidance was later found to be incorrect. The Independent notes that an active proposal to strike off the business remains on the register.
In a statement, Moon asserted that the loan application was made in good faith. "The loan application was made in good faith, and the information provided, including the company's turnover forecast, was accurate and properly based," Moon said. He added that he would provide documents to demonstrate this to the party's process.
A Labour Party spokesperson confirmed the referral and the subsequent suspension. "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," the spokesperson said. "We cannot comment further while the investigation is ongoing."
The Independent reports that the suspension is administrative and carried out on a "without prejudice basis that does not imply any finding of wrongdoing at this stage." The Labour Whip has also been suspended for the duration of the investigation.
The Bounce Back Loan Scheme was introduced to support small businesses during the pandemic, issuing loans worth a total of £46bn. Each loan carried a 100% government guarantee, meaning public funds were used to reimburse banks if borrowers defaulted. A government report cited by the BBC found the scheme was vulnerable to fraud and error, with the Covid counter-fraud commissioner estimating total fraud and error at up to £2.8bn to the public purse.
This is the second investigation launched by the Labour Party into such loans. In August, MP Bayo Alaba was suspended after referring himself for investigation regarding loans made to a real estate company. Additionally, James McMurdock, who now sits as an independent, quit Reform in 2025 following questions about eligibility for loans he received.
The suspension of a second Labour MP highlights ongoing scrutiny of how pandemic-era financial support was utilized by businesses linked to elected officials. As investigations proceed, the focus remains on whether statutory obligations were met and if the use of taxpayer-guaranteed funds complied with the rules of the Bounce Back Loan Scheme.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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