Labour suspends Perran Moon over Covid loan repayments

Labour has suspended Perran Moon, the MP for Camborne and Redruth, over the repayment of a Covid-era Bounce Back Loan.

Mr Moon said he had voluntarily referred himself for investigation. A Labour spokesperson confirmed the referral, the BBC reported.

Mr Moon is listed on Companies House as co-director of a training company called Autoswot. The company was set up in June 2019 and last filed accounts in June 2021.

At the time it was set up, Autoswot had forecast revenues of more than £200,000. Mr Moon applied for the maximum Bounce Back Loan of £50,000.

He said the loan was used to pay for staffing and other essential business costs during the pandemic. Partial repayments were made until the company ceased trading in late 2022.

Mr Moon was first elected as an MP in 2024. He said he had applied for the loan within the rules and had regularly sought professional advice about its obligations.

He said he fully intended to repay the loan but his business ceased trading due to 'external market pressures'.

Bounce Back Loans of up to £50,000 were made available to support small businesses during the pandemic. A total of £46bn was issued when the scheme was launched in May 2020, with each loan carrying a 100% government guarantee.

The Covid counter-fraud commissioner estimated total fraud and error from the scheme at up to £2.8bn.

Mr Moon is the second Labour MP to be suspended over Covid loan repayments. Bayo Alaba, the MP for Southend East and Rochford, was suspended in August after queries about a Covid-era loan. He had referred himself for investigation over loans made to a real estate company, Alaba Properties.

James McMurdock quit Reform in 2025 and now sits as an independent after questions about his eligibility for loans he received. He was questioned over bounce back loans worth £70,000 given to two fitness companies.