Labour MP Bayo Alaba has had the whip suspended after questions were raised about Bayo Alaba’s bounce back loans and whether he sought to avoid repaying government Covid-19 support, with the party confirming an internal investigation is under way.
Alaba, who represents Southend East and Rochford, referred himself to Labour after a newspaper report questioned his conduct. He will now sit as an independent MP while the process continues, though a Labour Party spokesperson said the investigation ‘does not at this stage imply any wrongdoing’.
A Labour Party spokesperson 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. The Labour Party expects the highest standards from our elected representatives and we have robust processes in place to ensure those high standards are upheld. We cannot comment further while the investigation is ongoing.’
Bayo Alaba bounce back loans and Companies House records
Alaba has admitted taking out two bounce back loans during the pandemic. The pandemic-era scheme made taxpayer-funded loans of between £2,000 and £50,000 available to small and medium-sized businesses to ease financial difficulties.
Alaba is the registered co-owner of a company called Alaba Properties. Records at Companies House show that an attempt was made to wind up the company in March 2022. That attempt was blocked for unstated reasons. A second attempt followed and was also blocked in August 2022.
According to The Guardian, an expert the Times spoke to said Alaba Properties Ltd’s accounts suggest the company took out a loan. The Guardian also reported that before Alaba was elected as an MP in 2024, he ran a number of businesses.
The winding-up attempts are at the centre of the allegations against him. It is understood Alaba believes the loans will be repaid in full by the end of this year.
Objections process and government backdrop
The Department for Business introduced an objections process specifically to tackle the misuse of bounce-back loans, targeting business owners who sought to avoid repayments by striking off their companies. That mechanism blocked the attempts to wind up Alaba Properties, according to The Guardian.
Alaba has denied any wrongdoing. In a statement he said: ‘Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. I am proud of my background as a small business owner, and of the work I have done since entering politics to support the business community, in part because I know just how difficult things can be.’
He added: ‘There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full. I’ve referred myself to the Labour Party’s investigations process on the matter and I’ll cooperate fully.’
Mike Wood, a Conservative shadow Cabinet Office minister, called the disclosures ‘concerning revelations’ and said Alaba ‘clearly has questions to answer’. Wood said: ‘Alaba needs to come clean about whether he tried to avoid paying his debts, and ministers should tell us if they had to intervene to stop it.’
The Labour Party said it could not comment further while the Bayo Alaba bounce back loans investigation remains ongoing.
