Labour MP Bayo Alaba suspended as party opens probe into Covid loan handling

Labour MP Bayo Alaba, the representative for Southend East and Rochford, has been suspended from the party and stripped of the whip following a newspaper report that questioned his handling of a Covid-19 bounce-back loan. Alaba voluntarily entered the party’s investigative process after allegations emerged that he tried to dissolve his business, Alaba Properties, to avoid repaying one of two loans he received during the pandemic.

The Labour Party confirmed the suspension but noted that the inquiry does not yet imply misconduct. Alaba has admitted taking two loans and says he intends to settle the debt in full by the end of the year. Companies House records reveal two blocked attempts to wind up his company in 2022. Conservative shadow Cabinet Office minister Mike Wood urged Alaba to clarify whether he sought to evade his obligations and asked ministers to disclose any interventions made.