James McMurdock, MP for South Basildon and East Thurrock took the decision after The Times approached him with allegations about loans borrowed under the government’s Bounce Back scheme in 2020.
According to The Times investigation, McMurdock obtained the loans through two companies he owned.
The newspaper alleges that JAM Financial Limited, which had no employees and negligible assets until the pandemic, secured a £50,000 loan in 2020 – the maximum available under the scheme for medium-sized businesses.
A Times investigation alleges that for a firm to receive such a loan, it would have needed to report turnover of at least £200,000.
The Times also reports that McMurdock transferred his shares in the company to his mother and resigned as director in 2021.
The second company, Gym Live Health and Fitness Limited, was reportedly dormant until January 2020. According to The Times, it borrowed £20,000 over the following year, which would have required a turnover of £100,000 under the Bounce Back scheme.
The Times investigation alleges that neither company filed required accounts or annual corporate filings after receiving the loans – a violation of the Companies Act. According to the newspaper, both companies were due to be struck off the register but the process was halted in February 2023 after an objection from a third party.
The Times also claims that McMurdock appears to have breached parliamentary rules by failing to list his directorship of Gym Live Health and Fitness Limited on his register of interests.
When approached for comment by The Times, McMurdock reportedly warned “be very, very careful” and said “a technical expert” would be needed to understand the matters.
According to the newspaper, he repeatedly refused to explain why he took out the loans.
Reform UK chairman Lee Anderson confirmed McMurdock had removed the party whip from himself pending an investigation into the allegations.
The party is understood to be launching its own inquiry.
The Echo has approached Mr McMurdock for comment on The Times allegations.
