Labour MP suspended amid questions over £50,000 taxpayer-backed Covid loan

By GB News (Politics) | Created at 2026-08-17 15:15:07 | Updated at 2026-08-17 16:07:32 1 hour ago

A Labour MP has been suspended from the party amid questions surrounding whether he tried to avoid repaying a taxpayer-funded Covid loan.

Bayo Alaba, the MP for Southend East & Rochford, refused to answer questions about his alleged attempt to wind up one of his businesses before settling a loan.


The Labour Party has suspended the whip from Alaba.

It has also launched an internal investigation.

Mike Wood, the shadow Cabinet Office minister, urged Mr Alaba to explain what happened with the company.

He told the Times: "These are concerning revelations and Alaba clearly has questions to answer.

"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 public deserve the truth."

Bayo Alaba

Bayo Alaba has been suspended amid questions surrounding whether he tried to avoid repaying a taxpayer-funded Covid loan

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A Labour spokesman 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."

GB News has approached Mr Alaba and the Labour Party for further comment.

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