Latest news with #BounceBackLoanScheme
The National
2 days ago
- Business
- The National
James McMurdock MP worked for bank while 'claiming Covid loans'
James McMurdock suspended himself from the Nigel Farage-led party when reports emerged last week in The Sunday Times that he had borrowed £70,000 through two firms in 2020. One business was previously dormant, while the other had negligible assets, the newspaper reports. The MP for South Basildon and East Thurrock said he had quit the party after taking 'specialist advice' that he said was 'privileged and which I choose to keep private at this time'. READ MORE: Arms firms are buying exclusive access to MPs for as little as £1499 McMurdock received £50,000 through JAM Financial Ltd, and has not responded to claims this was a Bounce Back loan, where eligible businesses had to be 'adversely impacted by the coronavirus' and trading on March 1 2020. The Times now reports that JAM Financial was a personal service company that the MP used to receive earnings from Standard Chartered. McMurdock worked at the bank until he became an MP last year, setting up the firm just days before starting his role as a 'senior associate' in November 2016. By being paid through the company over three years, McMurdock assumed the status of a contractor, despite working there full time. The MP was placed on the bank's payroll in 2020 ahead of tax reforms due to come in in spring, The Times has now reported. (Image: Joe Giddens) The move was a part of a bid to ensure contractors paid the correct tax and national insurance contributions, and were not acting as 'disguised employees'. McMurdock was then paid directly, and JAM Financial received less money as a result, which had nothing to do with the coronavirus pandemic. Company accounts for JAM Financial show its debts never exceeded a few thousand pounds before the pandemic. But in the year to October 2020, it reported debts of £50,000, up from zero the year before. The amount is the same as the maximum available via the Bounce Back Loan Scheme. READ MORE: Why is Donald Trump facing a MAGA revolt over the Jeffrey Epstein list? McMurdock would have been required to report a turnover of at least £20,000. Reform have urged him to quit his role as an MP to allow a by-election to be held in his seat. It emerged after the election that he had been jailed after repeatedly kicking his ex-girlfriend outside of a Chelmsford nightclub. Farage refused to apologise for a lack of background checks on Reform candidates as it predated his leadership. Reform is now down to four MPs.
CNBC
28-05-2025
- Business
- CNBC
Goldman-backed Starling Bank reports 26% drop in annual profit as it flags Covid loan fraud issue
LONDON — British online lender Starling Bank on Wednesday reported a sharp drop in annual profit, citing an issue with Covid-era business loan fraud and a regulatory fine over financial crime failings. Starling, which offers fee-free current accounts and lending services via a mobile app, posted profit before tax for the year ending March 31, 2025 of £223.4 million ($301.9 million), down nearly 26% year-over-year. Revenue at the bank totalled £714 million, up about 5% from £682 million a year ago. However, that marked a slowdown from the more than 50% revenue growth Starling saw in its 2024 fiscal year. Profits for the year were impacted by a £29 million fine by the U.K.'s Financial Conduct Authority over failings related to Starling's financial crime prevention systems. Starling also flagged an issue with the Bounce Back Loan Scheme (BBLS) that was designed to provide firms with access to cash during the coronavirus pandemic. Starling was one of several banks that were approved to lend cash to firms during the Covid-19 outbreak in 2020. The scheme provided a 100% guarantee to lenders, making the government responsible for covering the full outstanding loan amount if a borrower defaulted. However, Starling said it has since "identified a group of BBLS loans which potentially did not comply with a guarantee requirement" due to weaknesses in its historic fraud checks. After flagging this to the state-owned British Business Bank, the firm subsequently "volunteered to remove the government guarantee on those loans." "As a result, we have taken a £28.2m provision in this year's accounts," the bank said, referring to both the FCA fine and BBLS issue. However, Starling said it held an Expected Credit Loss provision of £800,000 as of March 31 in relation to certain BBLS loans "where the guarantee provided under the BBLS guarantee agreement may no longer be available to the Company." "This is a legacy issue which we dealt with transparently and in full cooperation with the British Business Bank," Declan Ferguson, Starling's chief financial officer, said on a media call Wednesday. Starling has operated as a licensed bank in the U.K. since 2018. It counts the likes of Goldman Sachs, Fidelity Investments and the Qatar Investment Authority as shareholders. The firm, which was last privately valued in 2022 at £2.5 billion, faces hefty competition from both incumbent banks and rival fintechs like Monzo and Revolut.
