Perran Moon suspended as Labour investigates Covid-era company loan

Labour MP Perran Moon has been suspended over Covid-era loan repayments, the BBC reported on 20 October. Moon, who represents Camborne and Redruth, referred himself to a Labour Party investigation concerning a £50,000 loan to his training company, Autoswot. The party confirmed the referral; Moon says the loan application complied with the rules.

Moon said he applied for the maximum Bounce Back Loan after seeking professional advice about the company’s obligations. He said the application was made in good faith and that its turnover forecast was accurate and properly based. He has pledged to provide documents to the party investigation and cooperate with it.

What Moon says about the loan and repayments

The BBC reported that Moon had repeatedly received written assurances from Companies House that Autoswot did not need to file accounts after applying to be struck off, but that the guidance was incorrect. Companies House lists Autoswot as active, with an active proposal to strike it off. It shows the last accounts as made up to 30 June 2021 and flags overdue accounts and a confirmation statement. Moon’s account that the business stopped trading describes its operations; the register describes its legal status.

Autoswot was incorporated on 18 June 2019, according to Companies House. The BBC said the business had forecast revenue of more than £200,000 when it was established, before Bounce Back Loans became available. Moon said the turnover forecast in the loan application was properly based.

Labour’s investigation and the Bounce Back Loan scheme

A Labour spokesperson confirmed Moon had referred himself for investigation and said the party expects high standards from elected representatives. The spokesperson said the party could not comment further while the investigation was ongoing. Moon said he would continue representing his constituents during the process. The BBC report did not specify when his suspension took effect or its terms.

Bounce Back Loans were introduced in May 2020 to support small businesses during the pandemic. The BBC reported that £46bn was issued under the scheme, with loans of up to £50,000 carrying a full government guarantee. It cited a later estimate of up to £2.8bn in fraud and error across the scheme; that estimate does not establish wrongdoing in Moon’s case.

The BBC described Moon’s case as Labour’s second investigation into a Covid-era company loan. Bayo Alaba, the MP for Southend East and Rochford, was suspended after questions about a loan to his real estate company and referred himself for investigation in August. Alaba said at the time that he had not tried to avoid his financial obligations and was committed to meeting the liability in full.