Southend East and Rochford MP Bayo Alaba has been suspended by the Labour Party while an internal investigation examines questions surrounding Covid-era Bounce Back Loans linked to businesses associated with him.
Mr Alaba, who was elected as Labour MP for Southend East and Rochford in 2024, referred himself to the party for investigation after questions were raised about the handling and repayment of government-backed loans obtained during the pandemic.
Reports say one of the businesses under scrutiny, Alaba Properties Ltd, received a £50,000 Bounce Back Loan. The company had previously filed dormant accounts, and attempts to dissolve the company were subsequently blocked. Another business associated with Mr Alaba, Onit Events, is also reported to have received a £50,000 loan.
The Bounce Back Loan Scheme was introduced during the Covid-19 pandemic to provide rapid financial support to small businesses facing economic difficulties. Concerns have since been raised over businesses that may have received loans despite questions about their eligibility or subsequently failed to repay them.
Mr Alaba has denied wrongdoing and has said he is committed to repaying the loans in full. Reports indicate that he is now repaying the outstanding amounts.
The Labour Party has confirmed that the matter will be investigated under its internal rules. The suspension means Mr Alaba has also lost the Labour whip and is expected to sit in Parliament as an independent while the investigation continues. The suspension itself does not establish that he has committed any wrongdoing.
The development is likely to attract significant attention in Southend East and Rochford, where Mr Alaba represents constituents in Parliament. Official election results show that he won the constituency for Labour at the 2024 general election with 15,395 votes.
The investigation will now determine whether any party rules or other requirements were breached and whether further action is necessary.
For now, the allegations remain under investigation, and no finding of wrongdoing has been made against Mr Alaba.
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