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Reformed British Parliament has suspended himself from parties on allegations that he received a government loan of £70,000 during the coronavirus pandemic.
James McMurdoch removed the whip from himself and left Nigel Farage’s right-wing populist party in the House with just four lawmakers.
On Saturday, the Sunday Times reported allegations that South Basildon and East Thurrock MP and former banker McMurdoch borrowed tens of thousands of pounds in 2020 under the government’s bounceback loan scheme through two companies he owns.
The scheme helped small and medium-sized businesses borrow from £2,000 to 25% of their revenue. The maximum loan available was £50,000.
According to a Sunday Times bill, there were no employees or assets to ignore until Covid-19 collided.
Due to the rules of the scheme, the company would have needed £200,000 sales to borrow £50,000. According to Company House accounts, Jam had a total net worth of just £3,712 in 2020.
The other company was Gym Live Health and Fitness Limited. This was suspended until January 31st, 2020. Even in 2021, his net worth was just £3,277. According to the Times on Sunday, the following year he borrowed £20,000.
Reform chief Whip Lee Anderson said on Saturday that he was contacted by McMuldock before the claims were made public.
“The allegations relate to the validity of the business during the pandemic and before he became MP,” Anderson said.
“In Reform UK, we take these issues very seriously and James has agreed to fully cooperate with the investigation. We will not comment further at this time.”
The Sunday Times said it had requested comment from McMurdoch. At that point, he warned the reporter, “Be very careful.” He added that “technical experts” are needed to explain the problem. McMurdoch repeatedly refused to reveal why he took the loan, the Sunday Times reported.
McMurdoch previously worked for Barclays Capital, Goldman Sachs and Standard Chartered Bank, according to a daily telegraph article released last year. He decided to run for Congress in May 2024.
It was revealed in November that McMurdoch was jailed in 2006 for repeatedly kicking his girlfriend.
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The MP allegedly said he had “pushed” his partner when details of his conviction were revealed in July. However, court records from his ruling, obtained by the Times, showed that he was detained in a young offender’s facility for 21 days for kicking the victim about four times.
The poll-leading reforms won five seats in last year’s general election, but one of those lawmakers, Rupert Lowe, was kicked out of the party after leader Nigel Farage had “Messianic qualities” and had failed to delegate. Lowe is currently sitting in Congress as an independent.
The party won the Runcorn and Helsby by-elections in May, temporarily bringing the MP’s tally back to five.
