MP James McMurdock has said he will not return to Reform UK, after he asked to be suspended from the party following questions about loans he took out under a Covid support scheme.
The claims, published at the weekend by the Sunday Times, relate to loans McMurdock took out amounting to £70,000 via two companies, and whether the firms were eligible.
Responding to the investigation, the Essex MP said all his business dealings had been compliant with the rules but added that he had asked to be suspended from the parliamentary party as a “precautionary measure”.
On Tuesday he said that after taking “specialist legal advice” he had decided “to continue my parliamentary career as an independent MP”.
In a post on social media, McMurdock said that would allow him to “focus 100% on the interests of my constituents”.
He won the seat of South Basildon and East Thurrock in the July 2024 general election, beating Labour by just 98 votes.
His decision means he is the second of the five Reform MPs elected in last year’s election to leave the party.
In March, Rupert Lowe was suspended and now sits as an independent MP.
The party’s by-election victory in May, which saw Sarah Pochin elected to represent Runcorn and Helsby, means there are now four Reform MPs.
The Sunday Times alleged that McMurdock borrowed tens of thousands of pounds under the government’s Bounce Back loans scheme, which was designed to help struggling businesses during the Covid-19 pandemic.
The newspaper said the loans were worth a total of £70,000 and were applied for through two companies – JAM Financial Limited and Gym Live Health and Fitness Limited.
Company records show JAM Financial Limited had one employee and less than £5,000 in assets before the pandemic, and that Gym Live Health and Fitness Limited was dormant until January 31, 2020.
The Sunday Times claimed JAM Financial Limited took out the maximum loan of £50,000, a level of loan that required a turnover of at least £200,000.
Gym Live Health and Fitness Limited is alleged to have taken out loans worth £20,000, which would have required a turnover of £80,000.
In statement over the weekend, McMurdock said his business dealings had been assessed by “appropriately qualified professionals” and “absolute compliance was confirmed”.