MP resigns Reform UK whip amid ‘business propriety' investigation
The Sunday Times published a story on Saturday which alleged two businesses connected to Mr McMurdock took out Covid-19 loans totalling £70,000 during the pandemic.
A statement from Lee Anderson, Chief Whip Reform UK. pic.twitter.com/hsT4cm5SsN
— Reform UK (@reformparty_uk) July 5, 2025
Lee Anderson said in a statement on Saturday that the allegations against Mr McMurdock which led to him removing the whip 'relate to business propriety during the pandemic and before he became an MP'.
Mr Anderson said that Mr McMurdock has 'agreed to co-operate in full with any investigation'.
In a statement published on Reform's X account on Saturday afternoon, Mr Anderson said: 'I have today received a call from James McMurdock who has advised me, as chief whip, that he has removed the party whip from himself pending the outcome of an investigation into allegations that are likely to be published by a national newspaper.
'The allegations relate to business propriety during the pandemic and before he became an MP,' Mr Anderson said.
Mr McMurdock has represented South Basildon and East Thurrock since last July's general election.
He won the seat by 98 votes, beating Labour into second place, and taking the seat from the Conservatives.
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James McMurdock removed the party from himself last week due to questions over business propriety. An MP who 'suspended himself' from Reform UK over questions related to Covid loans has now left Nigel Farage's party. James McMurdock, the MP for South Basildon and East Thurrock "removed the party whip from himself" last week pending the outcome of a probe into allegations around "business propriety during the pandemic". The Sunday Times published a story on Saturday which alleged two businesses connected to Mr McMurdock took out Covid-19 loans totalling £70,000 during the Covid-19 pandemic, one of which had no employees. Today, he said he "had a chance to take specialist legal advice from an expert in the relevant field" since the loans came to light. Writing on social media site X, he added: "In light of that advice, which is privileged and which I choose to keep private at this time, I have decided to continue my parliamentary career as an independent MP where I can focus 100% on the interests of my constituents." The move leaves the party with just four sitting MPs, following the departure of Rupert Lowe earlier this year in a furious dispute with Mr Farage and the party's chairman Zia Yusuf. The Sunday Times reported allegations Mr McMurdock's firms, JAM Financial Ltd and Gym Live Health and Fitness Ltd, borrowed £70,000 in Covid Bounce Back loans in 2020, at the height of the pandemic. In 2020, it's claimed, JAM Financial - which had no employees until the pandemic - took out a loan of £50,000 - the maximum available for medium-sized businesses. Mr McMurdoch transferred his shares in the firm to his mother and subsequently resigned as a director in 2021. Gym Live, which was dormant until January 2021, borrowed £20,000 in the same year. Both companies were in the process of being struck off the Companies House register - but on the same day in February 2023 the move was halted after the regulator received an objection from a third party, according to the Sunday Times. In his statement, Mr Anderson wrote: "I have today received a call from James McMurdock who has advised me, as Chief Whip, that he has removed the party whip from himself pending the outcome of an investigation into allegations that are likely to be published by a national newspaper." He added: "The allegations relate to business propriety during the pandemic and before he became an MP. At Reform UK we take these matters very seriously and James has agreed to cooperate in full with any investigation. We will not be commenting further at this moment." Mr McMurdock has not publicly commented on the suspension or allegations, but is reported to have told the Times to "be very careful". He was elected MP for South Basildon & East Thurrock after getting 98 more votes than the Tory Stephen Metcalfe in July's election. It later emerged he had served time in jail for repeatedly kicking his former girlfriend in 2006. James McMurdock had previously claimed he was sent to a young offenders' institution for "pushing" the victim on a drunken night out. However, court documents obtained by The Times reveal the reason given for his sentence was 'kicking to victim on around four times'. A sentencing report said the crime "requires immediate punishment", while a pre-sentence report suggested there was a "lack of willingness to comply". The victim's mum claimed the attack "left marks on her body" and said it took two security guards to pull Mr McMurdock off her. The assault happened at the end of a night out in 2006, and Mr McMurdock was sentenced to 21 days after admitting the attack. His conviction came to light when the victims' mother contacted the Daily Mail voicing her anger that he had been allowed to stand as an MP.
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James McMurdock has said he will not return to Reform UK after resigning the whip over questions related to Covid loans, becoming the second MP to leave the party since the general election last year. The MP for South Basildon and East Thurrock 'removed the party whip from himself' last week, pending the outcome of an investigation relating to allegations around 'business propriety during the pandemic'. It comes after a Sunday Times investigation alleged two businesses connected to Mr McMurdock took out Covid -19 loans totalling £70,000 during the pandemic, one of which had no employees. On Tuesday, the MP said he 'had a chance to take specialist legal advice from an expert in the relevant field' since the loans came to light. Writing on social media site X, he added: 'In light of that advice, which is privileged and which I choose to keep private at this time, I have decided to continue my parliamentary career as an independent MP where I can focus 100 per cent on the interests of my constituents.' Mr McMurdock is the second Reform MP to leave the party following the departure of Rupert Lowe earlier this year, who now also sits as an independent. Mr Lowe was expelled from Reform in March amid allegations of bullying, which he has strongly denied. According to Companies House, Mr McMurdock is listed as the current director of Gym Live Health and Fitness Limited, and a former director of J A M Financial Limited, a position he resigned in 2021. Both firms are shown to have overdue accounts and confirmation statements, and both have an 'active proposal to strike off'. Over the weekend, Mr McMurdock insisted that 'all my business dealings had always been conducted fully within the law and in compliance with all regulations and that appropriately qualified professionals had reviewed all activity confirming the same'. He said he had asked for the Reform whip to be suspended temporarily as a 'precautionary measure'. Speaking to Reform councillors on Monday morning, Nigel Farage said 'how we behave matters', adding that he 'can't apologise' for the 2024 election vetting process because he was not involved in it. 'I came in, I inherited this situation where hundreds of candidates who stood in the last general election had not gone through a vetting process', he said, seeking to distance himself from the process. 'I said on July 5, the day after the election last year, that we would now professionalise. 'We put 1,630 candidates into the field on May 1, more than any other party with very, very few rows or arguments – so the vetting process worked for this year, I can't apologise for what happened before.' The Reform leader did not answer when asked whether the allegations faced by Mr McMurdock were an embarrassment for his party. 'Let's find out the truth, I know as much about this right now as you do,' said Mr Farage. Addressing Reform UK Kent County Council councillors on the steps inside County Hall, he said: 'Behaving with integrity is a responsibility upon all of you, although that doesn't mean you all have to become stuffed shirts or anything like that. 'You are holders of public office you are responsible and how we behave matters.'
