Labour MP Perran Moon Suspended Amid Inquiry into Unpaid COVID Bounce Back Loan
Labour MP Perran Moon has had the party whip suspended while the party investigates claims that a company he co-owned sought to wind up without fully repaying a taxpayer-backed Bounce Back Loan taken during the COVID-19 pandemic.
Moon, the MP for Camborne and Redruth in Cornwall since the July 2024 general election, self-referred the matter to Labour’s investigations process. A party spokesperson confirmed the referral and stated that the party expects the highest standards from its MPs, with robust processes in place, but declined further comment while the probe is ongoing. The suspension is understood to be a precautionary step pending the outcome.
In a statement, Moon said a company he co-owns had successfully applied for a Bounce Back Loan to cover staffing and essential costs amid the turbulence of the pandemic. The business began repayments but ceased trading in late 2022 due to unforeseen external market pressures, despite staff efforts.
He maintained that the company had fully intended to repay the loan, continued payments until it stopped trading, and had regularly sought professional advice on its statutory obligations.
Moon emphasised that the application was made in good faith with accurate information, and he pledged to cooperate fully and provide supporting documents. He said he would continue representing his constituents during the process.
Public records show Moon was a director and person with significant control of Porthchapel Ltd (company number 10954176), an advertising agency incorporated in September 2017. The company, registered in the Banbury area of Oxfordshire where Moon previously lived, filed accounts up to 30 September 2022 and was dissolved via voluntary strike-off in October 2023.
Moon has also been linked to AutoSwot Ltd, an active online training company of which he remains a director and significant shareholder (registered in his parliamentary interests).
The case follows similar scrutiny of other Labour MPs over pandemic Bounce Back Loans.
Earlier in 2026, Bayo Alaba, the MP for Southend East and Rochford, was suspended after questions about loans taken by one of his businesses and attempts to wind it up.
Bounce Back Loans, introduced by the government in 2020 as 100% government-guaranteed facilities of up to £50,000 for small and medium-sized businesses, have faced widespread criticism over fraud and non-repayment rates estimated in the billions of pounds.
Moon, born in Redruth in 1970, previously worked in marketing and communications for automotive and related firms including Nissan, Renault, Manheim UK, Auto Trader, and later as chief marketing officer and interim CEO of the electric vehicle charging company Believ.
He has advocated for renewables, critical minerals mining in Cornwall, and Cornish interests in Parliament, and was one of several Cornish MPs to take their affirmation in the Cornish language.
Separate earlier questions about his election campaign spending were referred to police in 2025; the party expressed confidence that spending limits had not been exceeded.
The investigation remains ongoing, and no findings of wrongdoing have been made. Moon has said he will continue his parliamentary work while cooperating with the process. The episode adds to broader political debate over the administration, recovery, and accountability surrounding the large-scale COVID business support schemes.
