Reform UK's James McMurdock Steps Back After Allegations Over COVID Bounce Back Loans

MP Steps Down as Allegations Surface Over Pandemic Business Loans

James McMurdock, the newly elected MP for South Basildon and East Thurrock, has put Reform UK in the spotlight—just weeks after the party’s surprise election breakthrough. He’s voluntarily stepped back from the party whip, pending an investigation into claims that companies he directed received significant government aid during the COVID-19 lockdown.

The headlines began when The Sunday Times reported that two entities connected to McMurdock—Gym Live Health and Fitness Limited and J A M Financial Limited—took a combined £70,000 from the government’s Bounce Back loan scheme. J A M Financial Limited, in particular, received a hefty £50,000, the scheme’s maximum, despite having no employees and barely any assets at the time. These loans were meant to rescue small businesses facing disaster from the pandemic’s harsh shutdowns. Seeing cash go to firms with such slim operations has raised a lot of eyebrows, not just in Westminster, but also among small businesses who struggled to access support.

McMurdock’s response was pretty direct: he denies any wrongdoing and insists all his business moves were above board and checked over by professionals. "I have followed all regulations," he stated, underscoring his belief that both the process and advice he received were sound. Still, he’s decided to step away from his party duties “to protect the party from reputational risk,” as the brewing investigation takes shape.

Over at Reform UK, the move was met with a swift official reaction. Chief Whip Lee Anderson announced McMurdock’s temporary suspension. The party wants to show it’s serious about holding its members to account. “We take these matters very seriously and will cooperate fully with any investigation,” Anderson said, signaling the party isn’t afraid to tackle potential controversy. Reform’s leadership is well aware that, after this year’s election success, their standards are under a microscope.

Company Records Offer Few Answers

Peeling back the curtain on the businesses at the heart of the row reveals a messy picture. Gym Live Health and Fitness Limited and J A M Financial Limited have both failed to file basic documents with Companies House. Their accounts and confirmation statements are overdue. Both firms are currently subject to official proposals to be struck off the UK’s companies register—a fate reserved for inactive or noncompliant companies. That’s all public information, and it adds fuel for critics wondering whether the original purpose of the Bounce Back loans was met.

The Bounce Back Loan Scheme was launched at breakneck speed in 2020 when small businesses nationwide were gasping for cash. The rules made it easy to apply, with loans guaranteed by the government and minimal checks up front. But there’s been a rush of similar revelations—including fraud and misuse—as regulators comb through pandemic-era payouts.

For McMurdock, the timing couldn’t be more awkward. Reform UK has been making headlines by pushing itself as a voice for “ordinary people” disillusioned with mainstream parties. Polls even suggest they could chip away at established political ground in the months ahead. Yet, the party’s claim to moral clarity is being tested: after all, close public scrutiny is the price of greater political clout.

Right now, an official investigation will have the last say. What’s certain is that Reform UK’s quick action—suspending a James McMurdock whip pending full transparency—sets a tone for how they want to be viewed in the post-pandemic political order.