Reform UK MP quits Nigel Farage's party after taking 'specialist legal advice'

An MP who 'suspended himself' from Reform UK over questions related to Covid loans has 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 an investigation relating to 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 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."

It 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 a loan of £50,000 - the maximum available for medium-sized businesses.

Mr McMurdoch transferred his shares in the firm to his mother and resigned as a director in 2021.

Gym Live, which was dormant until January 2021, borrowed £20,000 over the same year.

Both firms 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 Tory Stephen Metcalfe in July's election.

It later emerged he had been jailed 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. But 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.

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When his conviction came to light shortly after the general election Mr McMurdock disputed the details and said some might see it as a "teenage indiscretion".

The assault happened at the end of a night out in 2006. 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.