Labour MP Perran Moon Suspended Over Covid Loan Investigation
Suspension follows self-referral regarding a £50,000 bounceback loan taken by his co-owned company, Autoswot Limited.
Callum Smith
Labour MP Perran Moon has been administratively suspended by the party.
Perran Moon, a Labour MP, now stands suspended. The Labour Party confirmed this action as a precautionary measure, enacted on a without prejudice basis.
Mr. Moon co-owned Autoswot Limited, a training company established in 2019. This firm secured the maximum £50,000 through a taxpayer-backed Covid loan.
A Labour Party spokesman stated, "Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the Party's rules."
Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the Party's rules.
Autoswot Limited ceased trading in late 2022. Mr. Moon claims the loan covered "staffing and other essential business costs" during the pandemic, with partial repayments made until the company stopped trading.
An attempt to wind up Autoswot Limited in November 2022 was blocked. Mr. Moon approached Companies House after the firm applied to be struck off; Companies House confirmed on three occasions that accounts were not required.
Mr. Moon maintains his business fully intended to repay the loan, making repayments until external market pressures forced it to cease trading. He also stated, "The company has regularly sought professional advice with regards to our statutory obligations and as a director I take these obligations seriously."
The investigation claims Mr. Moon attempted to wind up his co-owned business without fully repaying the taxpayer-funded loan. Mr. Moon stressed he applied for the maximum loan within the rules, regularly seeking professional advice about its obligations, and would provide documents to the Labour Party investigation.
The Labour Party expects the highest standards from its elected representatives, a spokesman affirmed. The spokesman added, "We cannot comment further while the investigation is ongoing."
Separately, Labour MP Bayo Alaba faced suspension in August over questions concerning a Covid loan repayment.
Bounce back loans, totaling £46bn, were issued when the scheme launched in May 2020. The Covid counter-fraud commissioner estimated total fraud and error at up to £2.8bn to the public purse.
Mr. Moon stated, "I will continue to work hard every day representing my constituents while this party process is ongoing."