James McMurdock says he will not return to Reform UK after Covid loan questions

MP James McMurdock will not return to Reform UK after resigning the party whip over questions related to Covid loans, he has said.

The MP for South Basildon and East Thurrock “removed the party whip from himself” last week pending the outcome of an investigation relating to allegations around “business propriety during the pandemic”.

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 Tuesday, the MP 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.”

According to Companies House, Mr McMurdock is listed as the current director of Gym Live Health and Fitness Limited, and a former director of J A M Financial Limited, a position he resigned in 2021.

Both firms are shown to have overdue accounts and confirmation statements, and both have an “active proposal to strike off”.

Mr McMurdock insisted when the Sunday Times news story broke that “all my business dealings had always been conducted fully within the law and in compliance with all regulations and that appropriately qualified professionals had reviewed all activity confirming the same”.

He said he had asked for the Reform whip to be suspended temporarily as a “precautionary measure”.

The chairwoman of the Labour Party said Nigel Farage “sat on his hands” over the allegations and that the Reform UK leader should “come clean with the public about what he knew and when”.

“After these serious allegations surfaced, Nigel Farage sat on his hands. He took no action against James McMurdock and instead outsourced the problem – that’s not leadership,” MP Ellie Reeves said.

She added: “Farage’s Reform has proven once again that they simply cannot uphold the high standards expected in public life.”

Of the five MPs elected under the Reform UK banner in July 2024, two now sit as Independents.

Rupert Lowe, who represents Great Yarmouth, was suspended earlier this year following allegations about his conduct which he has denied.

Sarah Pochin won the Runcorn by-election in May, meaning that Reform now has four MPs.