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Perran Moon, the Labour MP representing Camborne and Redruth, has been suspended following an investigation into Covid loan repayments. Moon voluntarily referred himself for scrutiny amid concerns linked to his involvement as co-director of a training company named Autoswot, which was established in June 2019 and last submitted financial accounts in June 2021.
During the pandemic, government-backed Bounce Back Loans of up to £50,000 were introduced to support small businesses, although a government report later identified vulnerabilities in the scheme that allowed for potential fraud and errors. In total, £46 billion worth of these loans were distributed starting from May 2020. The government provided a full guarantee for these loans, meaning taxpayer money was at stake if businesses defaulted. Subsequent investigations by the Covid counter-fraud commissioner estimated losses due to fraud and error at as much as £2.8 billion.
Moon maintained that he applied for the maximum allowable loan legally and responsibly, regularly consulting professional advisors about the company’s obligations. He stated that the funds were used to cover “staffing and other essential business costs” during the pandemic and that payments on the loan had been made until Autoswot ceased its operations in late 2022. According to reports, Moon was repeatedly assured by Companies House in writing that no further financial accounts needed to be filed after the company applied for striking off; however, this advice later proved to be inaccurate.
Having been elected in Labour’s 2024 landslide after a career in communications and marketing, Moon attributed the business’s closure to unexpected market challenges despite the efforts of his staff. He affirmed his commitment to cooperate fully with the ongoing Labour Party investigation, emphasizing that his loan application was made in good faith with accurate information including the company’s turnover forecast. The party confirmed the investigation but declined to comment further while the process continues.
Moon’s case follows similar scrutiny involving other MPs. In August, Labour MP Bayo Alaba was suspended over questions regarding a Bounce Back Loan taken out by his real estate firm, Alaba Properties. Alaba stated, “There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full.” Additionally, James McMurdock, who left the Reform party in 2025, was the first MP publicly questioned about Bounce Back Loans, having received £70,000 across two fitness businesses. McMurdock declared that all his business activities complied with the rules and, after obtaining legal advice, decided to continue his parliamentary role as an independent
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