**MP James McMurdock’s Departure from Reform UK Amid Covid Loan Controversies**
In a significant political development, MP James McMurdock has announced that he will not be returning to Reform UK following his request for suspension from the party amidst swirling allegations regarding loans he took from a Covid support scheme. The Essex MP, representing South Basildon and East Thurrock, took this step after claims arose concerning loans totaling £70,000 that he secured through two companies, raising questions about their eligibility.
The situation first came to light with a report published over the weekend by the Sunday Times, which scrutinized the financial dealings of McMurdock. The article highlighted that the loans in question were acquired through JAM Financial Limited and Gym Live Health and Fitness Limited, with concerns over whether these firms met the criteria necessary for receiving such financial support intended for businesses suffering due to the pandemic.
In response to the allegations, McMurdock asserted that all his business activities adhered strictly to regulatory guidelines. Nevertheless, he maintained that he opted for a precautionary suspension from the Reform party to address the claims transparently. On Tuesday, after consulting with “specialist legal advice,” he solemnly declared his decision to continue his tenure in Parliament as an independent MP, distancing himself from the party amid the controversy.
Via a post shared on his social media platforms, McMurdock elaborated that this move would enable him to focus entirely on the interests of the constituents he serves. Reflectively, he shared how the incident of the loan claims had challenged him but expressed confidence in his path forward. McMurdock was elected to Parliament in July 2024, winning his seat by a narrow margin of just 98 votes against a Labour candidate.
His departure marks a notable shift within Reform UK, which has experienced its share of turbulence. Following his decision, McMurdock becomes the second of the five MPs who were elected in last year’s election to exit the party. Earlier in March, another MP, Rupert Lowe, faced suspension and now operates independently in the House of Commons. The party did experience a temporary boost with the election of Sarah Pochin to represent Runcorn and Helsby in May, which brings their current number of MPs down to four.
Adding context to the allegations, the Sunday Times reported that the loans McMurdock received were part of the government’s Bounce Back loans scheme, a significant initiative rolled out to assist businesses struggling during the challenging economic times wrought by the Covid-19 pandemic. Specifically, the loans were reportedly sought through his businesses—JAM Financial Limited and Gym Live Health and Fitness Limited.
Examining company records revealed some startling information, such as JAM Financial Limited having only one employee and assets below £5,000 before the pandemic. Meanwhile, Gym Live Health and Fitness Limited had remained dormant until January 31, 2020. Notably, McMurdock has cited that JAM Financial Limited secured the maximum loan of £50,000, which typically necessitated a minimum turnover of £200,000—criteria that appear questionable based on McMurdock’s company’s financial state prior to the uptake of the loan. Additionally, Gym Live Health and Fitness Limited reportedly took out loans amounting to £20,000, with turnover requirements of around £80,000.
In response to the allegations, McMurdock firmly stated that his financial dealings had been thoroughly assessed by qualified professionals, whom he claimed confirmed compliance with all relevant laws and guidelines. Following the unfolding scandal and his eventual departure from Reform UK, it is yet to be seen what long-term ramifications would occur for McMurdock, his constituents, and the Reform party itself as it wrestles with this internal crisis.
