Labour MP ex-Autotrader exec suspended over Covid loan

Former Autotrader marketing director Perran Moon, now MP for Camborne and Redruth, has been suspended by the Labour Party while an internal investigation examines a £50,000 Bounce Back loan he secured during the Covid pandemic. The probe raises concerns for dealers about loan compliance and political scrutiny.

Key takeaways

• Perran Moon is MP for Camborne and Redruth and former Autotrader executive.
• He took a £50,000 Bounce Back loan in 2020 for his training firm Autoswot.
• Labour suspended him pending an internal investigation into the loan’s repayment.
• Moon denies wrongdoing and says the loan was applied for in good faith.
• Autoswot ceased trading in late 2022 after partial loan repayments.

Background and loan details

Autoswot, a training company founded by Moon in June 2019, projected revenues of more than £200,000 before the pandemic.

The firm applied for a Bounce Back loan of £50,000 after the scheme opened in May 2020. Moon says the cash covered staffing and other essential costs, with partial repayments made before the business closed in late 2022.

The loan was part of the government’s scheme to help businesses survive the pandemic’s economic impact.

Labour Party response

The Labour Party confirmed Moon voluntarily entered its investigations procedure and said it expects the highest standards from its MPs.

A party spokesman added that robust processes are in place to uphold those standards, but no further comment will be given while the probe continues.

The party also noted that any breach of loan terms could lead to further disciplinary action if proven.

Previous similar cases

Moon’s case follows the August suspension of Labour MP Bayo Alaba, who faced questions over a Covid-era loan to his real‑estate firm Alaba Properties.

A comparable situation occurred in 2025 when former Reform UK MP James McMurdock left the party after fitness companies he was linked to received Bounce Back loans totalling £70,000.

These cases illustrate the growing scrutiny of Covid-era financial support across party lines.

What this means for dealers

Dealers using the Bounce Back scheme must ensure all turnover forecasts and supporting information are fully accurate, as errors can trigger investigations that damage reputation.

The high‑profile nature of the probe underlines the importance of transparent accounting and prompt repayment, especially for businesses with political connections, to avoid scrutiny that could affect customer confidence.

Frequently asked questions

What was the purpose of Perran Moon’s Bounce Back loan?

Moon applied for the £50,000 Bounce Back loan in 2020 to support his training business Autoswot. He stated the funds were spent on staffing costs and other essential expenses required to keep the company operating during the pandemic, before repayments began and the firm ceased trading in late 2022.

How has the Labour Party reacted to the allegations?

The party said Moon voluntarily entered its investigations procedure and that it expects the highest standards from its MPs. It confirmed robust processes are in place to deal with such matters but will not comment further until the internal enquiry is completed.

What should motor dealers learn from this situation?

Dealers should treat government loan schemes with rigorous documentation and ensure forecasts are realistic. Keeping clear repayment records and being transparent about fund use can reduce the risk of investigations. The case also shows that any perceived misuse can attract political and media attention, potentially affecting brand reputation.