A Labour MP has been suspended from the party amid claims he wound up his company without repaying a taxpayer-funded Covid loan.
MP for Camborne and Redruth Perran Moon voluntarily referred himself to the party over questions over a “bounce bank loan” taken out by a company he co-owned.
It is understood the company was eligible for the loan, but ceased trading while repayments were ongoing.
LabourList understands Moon agreed to be suspended while a party investigation takes place.
Moon said: “A company which I co-own had successfully applied for a bounce back loan to help with staffing and other essential business costs during the significant turbulence of the Covid pandemic. The business began to repay this loan, however, due to unforeseen external market pressures and despite the best efforts of staff, it ceased trading in late 2022. When the company took out the loan, it fully intended to repay it, and it made repayments until it ceased trading.
“The company has regularly sought professional advice with regards to our statutory obligations and as a director I take these obligations seriously. 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.
“The loan application was made in good faith, and the information provided, including the company’s turnover forecast, was accurate and properly based. I will provide the documents that demonstrate this to the Party’s process.
“I will continue to work hard every day representing my constituents while this party process is ongoing.”
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A Labour Party spokesperson said: “Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the party’s rules.
“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.
“We cannot comment further while the investigation is ongoing.”
It comes after Southend East and Rochford MP Bayo Alaba was suspended in August over allegations that he tried to avoid repaying a Covid loan.
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