Labour MP suspended after questions over taxpayer-funded Covid loan

A Labour MP has been suspended amid questions over a taxpayer-funded Covid loan. Bayo Alaba, who represents Southend East and Rochford, reportedly attempted to wind up one of his businesses before settling one of two bounceback loans.

He is understood to have referred himself to the Labour Party for investigation. Tory shadow Cabinet Office minister Mike Wood said: “These are concerning revelations, and Alaba clearly has questions to answer.

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“Alaba needs to come clean about whether he tried to avoid paying his debts, and ministers should tell us if they had to intervene to stop it. The public deserve the truth."

Bounceback loans worth between £2,000 and £50,000 were given to small and medium-sized businesses during the coronavirus pandemic to help them after lockdowns.

Mr Alaba is now repaying both loans, according to The Times.

A Labour Party spokesperson said: “Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party’s rules.

“The Labour Party expects the highest standards from our elected representatives, and we have robust processes in place to ensure those high standards are upheld.

“We cannot comment further while the investigation is ongoing.”

Mr Alaba is understood to have agreed for the whip to be suspended while the investigation takes place. The suspension is a precautionary step and implies no finding of wrongdoing.