IN the latest twist to what has been a controversial first year as MP for South Basildon and East Thurrock, Reform's James McMurdock has suspended himself from the party following allegations around his business affairs, likely to be published in a national newspaper.

In a statement, issued today (Saturday, 5 July), Reform chief whip Lee Anderson said: "I have today received a call from James McMurdock who has advised me, as Chief Whip, that he has removed the party whip from himself pending the outcome of an investigation into allegations that are likely to be published by a national newspaper.

"The allegations relate to business propriety during the pandemic and before he became an MP.

"At Reform UK we take these matters very seriously and James has agreed to cooperate in full with any investigation.

"We will not be commenting further at this moment."

Mr McMurdock - whose election success was confirmed exactly a year ago today after a long recount that saw him win by just 98 votes - almost immediately ran into newspaper headlines when it was revealed he had served a custodial sentence for assaulting his girlfriend.

He served 21 days for assaulting her, including kicking her four times.

The allegations against Mr McMurdock are set to be published in the Sunday Times, which has been investigating £70,000 of loans he took out under the government's Bounce Back loans scheme in 2020 during the Covid pandemic.

The newspaper alleges he did so through two companies he owned. One was JAM Financial Limited, which had no employees and negligible assets until the pandemic. In 2020 it took out a loan of £50,000, the maximum sum available under the loans scheme available for medium-sized businesses during the pandemic. For a firm to have received such a loan, it would have needed to report turnover of at least £200,000.

In 2021 Mr McMurdock transferred his shares in the company to his mother and resigned as director.

The other company is Gym Live Health and Fitness Limited, which was dormant until January 31, 2020. Over the following year it borrowed £20,000, which would have required a turnover of £100,000 under the Bounce Back scheme.

Neither company filed accounts or annual corporate filings after the loans — a violation of the Companies Act.

The Sunday Times says: "As a result of the failure to submit the information required, both companies were due to be struck off the register, meaning they would have ceased to exist and any remaining assets would have been seized by the Crown.

"However, in February 2023, on the same day, the process of suspending both companies was halted after the company regulator received an objection from a third party. It is understood this related to the loans in some way. Both remain active on Companies House.

"Separately, McMurdock appears to have breached parliamentary rules by failing to list his directorship of Gym Live Health and Fitness Limited on his register of interests. Parliamentary rules state MPs must register "significant, formal unpaid roles such as an unpaid directorship, a directorship of a company not currently trading, or a trusteeship".

The Sunday Times says that when Mr McMurdock was approached for comment he warned "be very, very careful" and said "a technical expert" would be needed for anybody to understand the matters. He repeatedly refused to say why he took out the loans.

Mr McMurdock says he will continue to sit in Westminster as an independent.