Labour MP Bayo Alaba suspended over pandemic loan investigation
Alaba referred himself to the party after media scrutiny of bounceback loans and company winding-up attempts, raising questions about debt avoidance and ministerial intervention.
The Labour Party has suspended Bayo Alaba, the Member of Parliament for Southend East and Rochford, pending an internal investigation into government Covid bounceback loans taken out by his businesses. The suspension follows media inquiries regarding two loans and attempts to wind up Alaba’s company, Alaba Properties Ltd, in 2022.
Alaba referred himself to the party for investigation after The Times newspaper questioned him about the loans and the company’s status. While Alaba confirmed he is repaying the loans, he did not address questions regarding the company’s initial eligibility for the funds or the reasons behind the winding-up attempts, which may have been interventions to avoid debt repayment.
Companies House records indicate that two attempts to wind up Alaba Properties Ltd were blocked in 2022. This legal process is typically utilised when a company has no outstanding debts. It remains unknown who made the intervention to block the winding-up, though the Department for Business introduced an objections process to tackle the misuse of bounceback loans by business owners attempting to avoid repayments by striking off their companies.
An expert consulted by The Times suggested that Alaba Properties Ltd took out a loan based on its accounts. Alaba, who was elected as an MP in 2024 after running several businesses, stated he was wholeheartedly committed to ensuring the liability was met in full. He referred himself to the Labour Party’s investigations process and pledged to cooperate fully.
Mike Wood, the shadow Cabinet Office minister, called for transparency regarding the matter. Wood stated that Alaba needs to clarify whether he attempted to avoid paying his debts and asked if ministers had to intervene to stop the winding-up attempts. He emphasised that the public deserves the truth.
A Labour Party spokesperson confirmed the suspension and the launch of the internal investigation. The party reiterated that it expects the highest standards from elected representatives and has robust processes in place to uphold them. The spokesperson added that the party cannot comment further while the investigation is ongoing.
