Second Labour MP suspended over Covid loan repayments

Moon, the MP for Camborne and Redruth, is listed on Companies House as the co-director of a training company called Autoswot, external, which last filed accounts in June 2021.

Government Bounce Back Loans of up to £50,000 were made available to support small businesses during the pandemic, but a government report found the scheme was vulnerable to fraud and error.

In August, Labor MP Bayo Alaba was suspended after questions about a Covid-era loan, and a third MP, James McMurdock, quit Reform in 2025 after questions about eligibility for loans he received.

Bounce back loans worth a total of £46bn were issued when the scheme was launched in May 2020, making it the biggest of the government's pandemic-era loan schemes.

Each one had a 100% government guarantee, meaning taxpayers' cash was used to pay back banks if the companies failed, but the Covid counter-fraud commissioner later found total fraud and error estimated at up to £2.8bn to the public purse.

Autoswot had been set up in June 2019, a year before the loans became available, and at that time had forecast revenues of more than £200,000.

Source: BBC News Health RSS (Open Press / Translated Full Text)