A United Kingdom Labour Member of Parliament, Bayo Alaba, has been suspended by the party and had the parliamentary whip withdrawn after questions were raised about government-backed Covid loans taken out by companies linked to him.
Alaba, the MP for Southend East and Rochford, referred himself to the Labour Party after The Times raised questions about loans received by businesses connected to him during the pandemic. Labour said it had launched an internal investigation and stressed that the decision did not establish that the MP had committed wrongdoing.
Alaba, who is of Nigerian descent, was elected in 2024 and became the first Labour MP for Southend East and Rochford. Before entering Parliament, he was involved in business and local politics.
The investigation centres on two Bounce Back Loans reportedly obtained by businesses associated with Alaba. The scheme was introduced during the Covid pandemic to support small businesses facing severe disruption. Loans were available for amounts between £2,000 and £50,000 and were backed by the government.
According to reports in The Times, The Guardian and the Financial Times, one company linked to Alaba, Alaba Properties, received a loan of £50,000. Questions have been raised because the company attempted to have itself removed from the Companies House register in March 2022 and again in August. Both attempts were blocked.
Reports have also raised questions about another company, Onit Events, which is linked to Alaba and also reportedly received a Bounce Back Loan. The scrutiny includes questions about whether the businesses met the eligibility requirements when the loans were obtained.
Alaba has acknowledged taking out two Bounce Back Loans but denies trying to avoid his financial responsibilities. He has said he remains committed to repaying the money in full.
In a statement, Alaba said that, like many businesses and entrepreneurs, he accessed financial support during the pandemic. He insisted there had been no attempt to avoid his obligations.
He has referred himself to the Labour Party investigation and said he will cooperate fully with the process.
Labour said it expects the highest standards from elected representatives and has procedures for investigating concerns. The party said it would not comment further while the investigation continues.
The suspension means Alaba will sit in the House of Commons as an independent rather than as a Labour MP while the inquiry is under way. He remains the elected MP.
The controversy comes as political parties face scrutiny over pandemic support schemes and efforts to recover public money. The government introduced measures to prevent companies from being dissolved while Covid loans remained unpaid.
The outcome of the Labour investigation could determine whether further disciplinary action is taken. For now, no finding of wrongdoing has been announced.
