James McMurdock MP has announced he will not be returning to Reform UK after requesting a suspension from the party amid scrutiny over loans obtained through a Covid support program.
The allegations, detailed in a report by The Sunday Times over the weekend, concern £70,000 in loans secured by McMurdock through two companies, raising questions about the eligibility of those firms.
In response to the investigation, the MP for Essex stated that all business transactions adhered to the established regulations. He added that he had requested a suspension from the parliamentary party as a “precautionary measure”.
On Tuesday, McMurdock stated that following “specialist legal advice,” he had decided “to continue my parliamentary career as an independent MP.”
In a statement posted on social media, McMurdock indicated that this decision would allow him to “focus 100% on the interests of my constituents.”
He secured the seat of South Basildon and East Thurrock in the July 2024 general election, defeating Labour by a narrow margin of 98 votes.
His departure marks the second instance of the five Reform MPs elected in the previous year’s election leaving the party.
Rupert Lowe was suspended in March and currently serves as an independent MP.
Following the party’s by-election win in May, which saw Sarah Pochin elected to represent Runcorn and Helsby, Reform UK currently has four MPs.
The Sunday Times reported that McMurdock allegedly borrowed tens of thousands of pounds through the government’s Bounce Back Loan Scheme, intended to support struggling businesses during the Covid-19 pandemic.
The loans, according to the newspaper, totaled £70,000 and were applied for through two companies: JAM Financial Limited and Gym Live Health and Fitness Limited.
Company records indicate that JAM Financial Limited had one employee and assets less than £5,000 before the pandemic, while Gym Live Health and Fitness Limited was dormant until January 31, 2020.
The Sunday Times claims that JAM Financial Limited secured the maximum loan amount of £50,000, which would have required a turnover of at least £200,000.
Gym Live Health and Fitness Limited is alleged to have taken out loans totaling £20,000, necessitating a turnover of £80,000.
In a statement released over the weekend, McMurdock asserted that his business dealings had been reviewed by “appropriately qualified professionals,” who confirmed “absolute compliance.”