Labour MP is suspended after facing questions over taxpayer-funded Covid loan

Published: 23:58, 17 August 2026 | Updated: 23:58, 17 August 2026 A Labour MP has been suspended after facing questions over a taxpayer-funded Covid loan. Bayo Alaba, MP for Southend East and Rochford, referred himself to the party following an investigation into the funding. He is said to have tried to wind up one of his businesses before settling one of two loans he received during the pandemic, The Times reported. The Labour Party said it had suspended the whip from Mr Alaba, right, and had launched an internal investigation.  A spokesman said: 'Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party's rules. We cannot comment further while the investigation is ongoing.' Elected in 2024, former paratrooper Mr Alaba previously ran a series of businesses in the music sector, with some later being liquidated, the paper reported.  He remains a co-owner of Alaba Properties Ltd, which appeared to have a bounceback loan taken out against it.  It reported that there was an attempt to wind up the company in March 2022 – a process that can only go ahead if a company has no debts.  Bayo Alaba, MP for Southend East and Rochford, referred himself to the party following an investigation into the funding This was blocked twice that year because 'cause has been shown why the above company should not be struck off the register', The Times reported. Mr Alaba told the paper: 'Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. 'There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full.' Mike Wood, the shadow Cabinet Office minister, said: 'These are concerning revelations and Alaba clearly has questions to answer.'