Labour Party Suspends Bayo Alaba Over Covid Loan Allegations

The Labour Party suspended the whip from Bayo Alaba, the MP for Southend East and Rochford, following allegations that he attempted to avoid repaying taxpayer-funded Covid-19 bounceback loans. The suspension is administrative and does not currently imply wrongdoing, according to the party.

An investigation was triggered after reports from The Times alleged that Alaba Properties Ltd, a company co-owned by Alaba, faced two blocked attempts to be struck off the register in March and August 2022. Such actions are typically blocked if outstanding debts remain. Alaba confirmed he accessed two bounceback loans and is currently repaying them, stating he expects the liability to be met in full by the end of 2026.

Alaba referred himself to the party's internal investigation process to ensure adherence to party rules and denied any attempt to avoid his financial obligations. However, he has not explained the specific attempts to wind up his company.

Conservative shadow Cabinet Office minister Mike Wood described the revelations as concerning and demanded that Alaba clarify whether he tried to avoid his debts. Wood also urged government ministers to disclose if they intervened to prevent the company's dissolution.