A second Labour MP has been suspended after asking party bosses to investigate his involvement with a £50,000 emergency Covid loan.
Perran Moon, the Labour MP for Camborne and Redruth, has voluntarily referred himself for an internal investigation into emergency pandemic funding received by his former company.
Moon entered Parliament in the 2024 Labour landslide following a career in communications and marketing.
Pandemic funding drawn by training firm
Moon served as co-director of Autoswot, a training company established in June 2019 with initial turnover projections exceeding £200,000.
The business took out a £50,000 Bounce Back Loan after the government launched the relief scheme in May 2020.
Accounts were last submitted for the business in June 2021, and the company ceased trading in late 2022.
Repayments made before business folded
Moon stated that the cash was allocated towards staffing and other essential operating expenses during the pandemic.
Partial repayments were made until the firm ceased trading due to unforeseen external market pressures, despite the best efforts of staff.
He maintained that the maximum £50,000 loan was sought strictly within official rules following regular professional advice.
Companies House repeatedly assured Moon in writing that no accounts needed to be filed after applying for strike-off, though that guidance was incorrect.
The loan application was made in good faith, and the information provided, including the company’s turnover forecast, was accurate and properly based.
Perran Moon, MP for Camborne and Redruth
Moon confirmed he would provide documentation to party investigators and announced his referral.
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.
Taxpayer cash backs bank losses
Bounce Back Loans formed the largest element of state support during the pandemic, handing out £46bn to small firms.
Because each loan carried a 100 per cent state guarantee, public funds pay back banks whenever recipient companies fail.
The Covid counter-fraud commissioner later estimated total losses across the scheme from fraud and error at up to £2.8bn.
Standards demanded by party bosses
A spokesperson for the Labour Party confirmed the self-referral and explained the party’s position.
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 added that no further comment would be made while the probe remains ongoing.
Further MPs face loan inquiries
Moon is the second Labour politician suspended over pandemic borrowing.
In August, Southend East and Rochford MP Bayo Alaba was suspended following queries over loans granted to a real estate business called Alaba Properties.
Alaba defended his actions when the investigation began.
There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full.
Questions have also targeted James McMurdock over £70,000 provided to two fitness companies.
McMurdock quit Reform in 2025 to sit as an independent MP following specialist legal advice. He maintained all his business dealings complied with the rules.