Keir Starmer said the Covid Counter Fraud Commissioner is investigating fraud in Covid bounceback loans, days after questions were raised about former Reform MP James McMurdock’s business affairs
Keir Starmer has vowed to go after “fraudsters, grifters and con artists” who exploited Covid support – days after a Reform MP was suspended over allegations he had done so.
The PM said it was a “scandal” that the Tories had handed more than £1.4billion over in failed PPE contracts – and pledged tough action on bouceback loan fraud. He said those who acted dishonestly would be targeted “no matter who they are and where we find them”.
It comes after Reform MP James McMurdock was suspended after the Sunday Times reported there were questions about loans totalling tens of thousands of pounds. Mr McMurdock, the MP for South Basildon and East Thurrock, has since said he will not seek to return to Nigel Farage’s party after taking legal advice.
Labour backbencher John Slinger asked: “In light of recent events, can the Prime Minister update the House on the work of the Covid Corruption Commissioner and does he agree with my constituents… that there should be no place in public life for those who exploited the pandemic and defrauded the taxpayer to line their own pockets?”
The PM gave a snappy response, stating: “My Honourable friend makes a powerful point and I hope it was heard on the benches opposite.” He continued: “It is an absolute scandal that failed PPE contracts were handed out by the Conservatives, the taxpayer funds of £1.4billion.
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“We’re focused on getting our money back. I can confirm the Commissioner is now investigatng fraud involving bounceback and business support loans.
“We’ll continue to go after the fraudsters, the grifters and the con artists no matter who they are and where we find them.” In December Labour appointed Tom Hayhoe as Covid Counter-Fraud Commissioner with a brief to “use every means possible to recoup public money lost in pandemic-related fraud and contracts that have not delivered”.
The Sunday Times published a story on Saturday which alleged two businesses connected to Mr McMurdock took out Covid-19 loans totalling £70,000 during the pandemic, one of which had no employees. On Monday he said he “had a chance to take specialist legal advice from an expert in the relevant field” since the loans came to light.
Writing on social media site X, he added: “In light of that advice, which is privileged and which I choose to keep private at this time, I have decided to continue my parliamentary career as an independent MP where I can focus 100% on the interests of my constituents.”
It left the party with just four sitting MPs, following the departure of Rupert Lowe earlier this year in a furious dispute with Mr Farage and the party’s chairman Zia Yusuf.
The Sunday Times reported allegations Mr McMurdock’s firms, JAM Financial Ltd and Gym Live Health and Fitness Ltd, borrowed £70,000 in Covid Bounce Back loans in 2020, at the height of the pandemic.
In 2020, it’s claimed, JAM Financial – which had no employees until the pandemic – took a loan of £50,000 – the maximum available for medium-sized businesses.
Mr McMurdoch transferred his shares in the firm to his mother and resigned as a director in 2021. Gym Live, which was dormant until January 2021, borrowed £20,000 over the same year.
Both firms were in the process of being struck off the Companies House register – but on the same day in February 2023 the move was halted after the regulator received an objection from a third party, according to the Sunday Times.
In a statement at the weekend, Reform chief whip Lee Anderson wrote: “I have today received a call from James McMurdock who has advised me, as Chief Whip, that he has removed the party whip from himself pending the outcome of an investigation into allegations that are likely to be published by a national newspaper.”
He added: “The allegations relate to business propriety during the pandemic and before he became an MP. At Reform UK we take these matters very seriously and James has agreed to cooperate in full with any investigation.
“We will not be commenting further at this moment.”
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