Reform UK MP James McMurdock has relinquished the party whip amid allegations concerning his business conduct, the party has confirmed.
Chief Whip Lee Anderson stated that McMurdock, the MP representing South Basildon and East Thurrock, has “removed the party whip from himself” pending an investigation into claims recently detailed by The Sunday Times.
“Reform UK treats these matters with utmost seriousness, and James has committed to fully cooperate with any inquiry,” Anderson affirmed.
Reform UK has announced it will conduct an internal investigation into the aforementioned allegations.
McMurdock has maintained that his business dealings “have consistently been conducted fully within the bounds of the law” and “in adherence to all relevant regulations.”
Anderson clarified that the allegations pertain to business propriety during the pandemic period, preceding McMurdock’s entry into Parliament last year.
The Sunday Times has alleged that McMurdock secured tens of thousands of pounds through the government’s Bounce Back Loan scheme, which was designed to provide support to businesses facing hardship during the Covid-19 pandemic.
According to the report, loans totaling £70,000 were obtained through two companies: JAM Financial Limited and Gym Live Health and Fitness Limited.
JAM Financial Limited is alleged to have acquired the maximum loan amount of £50,000, a figure typically reserved for businesses with a turnover of at least £200,000.
Gym Live Health and Fitness Limited is alleged to have secured loans amounting to £20,000, which would have required a turnover of £100,000.
The newspaper further claimed that JAM Financial Limited had no employees and negligible assets prior to the pandemic, and that Gym Live Health and Fitness Limited was dormant until January 31, 2020.
Sources indicate to BBC News that Reform’s internal investigation will likely be led by an external party and is expected to take several weeks.
In a statement, McMurdock asserted that his business dealings have been assessed by “appropriately qualified professionals” and that “absolute compliance was confirmed.”
He added: “As a precautionary measure, and to safeguard ReformUK, I have requested a temporary suspension of the party whip.”
McMurdock secured his seat in July with a narrow margin of 98 votes, surpassing Labour and unseating the Conservative incumbent.
A profile, since removed from Reform’s website, quoted McMurdock as stating his prior experience in business, including roles at Goldman Sachs and Lehman Brothers.
He is the second of the five Reform MPs elected in 2024 to lose the party whip, following Rupert Lowe’s suspension in March.
Lowe’s suspension followed allegations from the party that the Great Yarmouth MP made “threats of physical violence” against then-chairman Zia Yusuf.
The Crown Prosecution Service later stated that Lowe would not face criminal charges over the claims, which he denounced as “false” and a “brutal smear campaign.” He now serves as an independent MP.
Reform’s Sarah Ponchin won the Runcorn by-election in May, restoring the party’s Commons representation to five.
However, with McMurdock relinquishing the party whip, Reform now has four sitting MPs.