Perran Moon: Second Labour MP suspended amid questions over £50,000 taxpayer-backed Covid loan

Throughout the pandemic, the Government introduced a “dissolution objections process” in a bid to prevent firms from misusing bounceback loans.

Under such a process, borrowers were blocked from dodging repayments by dissolving their companies – which then struck off any outstanding loans.

Mr Moon has confirmed his firm took out a loan, with its accounts from June 2020 showing loans of £50,000.

And, in November 2022, there was an attempt to wind up the organisation, a bid which was later blocked by an opposing body.