Labour MP Bayo Alaba has been suspended by the party after being questioned about government Covid loans taken out by his businesses. Mr Alaba, who represents Southend East & Rochford, referred himself to the Labour party for investigation after The Times inquired about a loan given to one of his businesses during the pandemic.
Following contact from The Times, Labour suspended the whip from Mr Alaba and initiated an internal investigation. According to the newspaper, Mr Alaba appears to have taken out two bounceback loans during the Covid-19 pandemic. Questions have been raised regarding an attempt to wind up one of his companies in 2022 and the eligibility of his companies for the loans.
Before his election as an MP in 2024, Mr Alaba operated several businesses, including Alaba Properties Ltd. Accounts for this company suggest it took out a loan, according to an expert cited by The Times. Companies House records indicate two unsuccessful attempts in 2022 to wind up the company, a process typically permitted only when there are no outstanding debts.
Mr Alaba has confirmed taking out two bounceback loans and is understood to be repaying them. However, he did not address questions about the attempt to wind up Alaba Properties Ltd or the eligibility of his companies for the loans. In a statement, he said: “Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. I am wholeheartedly committed to ensuring that the liability is met in full. I’ve referred myself to the Labour party’s investigations process on the matter and I’ll cooperate fully.”
A Labour spokesperson confirmed Mr Alaba had referred the matter to the party for investigation, stating: “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.”