Mr Moon says he referred himself to the party over a £50,000 loan taken out by a business he co-owns, and insists the application was made “in good faith”. He is the second Labour MP to lose the whip over pandemic loans.
Perran Moon, the Labour MP for Camborne and Redruth, is understood to have lost the Labour whip while the party investigates a Covid-era loan taken out by a company he co-owns. Mr Moon referred himself to party officials so that questions about the emergency finance could be examined. Companies House records show he co-owns Autoswot Limited, an online training company set up in 2019, which is reported to have borrowed £50,000 under the Bounce Back Loan scheme, the maximum available. It is the second such suspension in the Labour ranks.
Mr Moon’s response
In a statement, Mr 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.”
He said the business began repaying the loan but, “due to unforeseen external market pressures and despite the best efforts of staff”, 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,” he said.
He added: “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.”
He went on: “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.”
Overdue filings and an attempted closure do not in themselves prove fraud or misuse of public money, and no finding has been made against Mr Moon or his company.
What company records show
Independent checks of Companies House records, set out in the research notes, add detail to the company’s position:
- Still registered: Autoswot Ltd (company number 12056775) was incorporated on 18 June 2019. A company can stop trading and remain on the register. The current entry shows an active proposal to strike it off, which does not mean it has been dissolved or that its debts are settled.
- Overdue filings: The latest accounts filed were for the year to 30 June 2021, with the next due on 31 July 2023, so they are more than three years late. The latest confirmation statement was filed on 17 June 2023, with the next due on 1 July 2024, more than two years overdue. These are separate compliance issues from the loan.
- The 2022 closure attempt: The source says an attempt was made in November 2022 to wind up the company. The records show the directors applied for voluntary strike-off on 4 November, the first Gazette notice followed on 15 November, and the action was suspended on 24 November. The public filing history does not say who objected, or whether the loan was the reason.
- Recent filings: On 2 May 2025, changes were filed to the recorded details of Mr Moon, who is listed as director and person with significant control, of John Ernest Bailey, a person with significant control, and of director Robert Macleod Barr. They are updates to existing records and do not suggest that trading resumed.
Earlier cases
In August, Bayo Alaba, the MP for Southend East and Rochford, referred himself to party officials after a newspaper approached him over a Covid-era loan to one of his businesses. On 8 September, Conservative MP Mike Wood asked ministers why compulsory strike-off proceedings against Alaba Properties Ltd had twice been discontinued and whether it still had an outstanding Bounce Back Loan. Business minister Blair McDougall said the company’s loan status was commercially sensitive and gave no company-specific explanation, so the government has not confirmed whether money is still owed.
Former Reform UK MP James McMurdock gave up his party whip in July 2025 over loans totalling £70,000 through two businesses: £50,000 for JAM Financial Ltd and £20,000 for Gym Live Health and Fitness Ltd. He denied wrongdoing and sits as an independent, and his business affairs were referred to the Public Sector Fraud Authority.
The wider picture
HM Treasury figures from June 2026 put estimated losses to fraud and error across the Covid schemes at £10.9bn, with £1.8bn recovered. Nearly £1.9bn in Bounce Back Loans has been flagged to the British Business Bank as suspected fraud. The government’s June response to the Covid Counter Fraud Commissioner recorded 2,940 director disqualifications and 86 successful criminal outcomes. Evidence given to the Public Accounts Committee in July suggested that about 70,000 companies withdrew dissolution attempts after objections, potentially protecting about £900m. These are national figures and do not imply that Mr Moon, Mr Alaba or their businesses are responsible for fraud.
The government has announced new powers this autumn, including civil financial penalties, wider information-gathering powers and ways to recover some debts from earnings or bank accounts. The limitation period for certain civil Covid fraud claims has been extended from six to 12 years. There is no announcement that any of these powers has been used against Mr Moon or Autoswot.
