Reform UK is once again embroiled in controversy as James McMurdock, the MP for South Basildon and East Thurrock, voluntarily suspended himself from the party whip amid allegations concerning his business conduct during the Covid-19 pandemic. The announcement came on July 5, 2025, with Reform’s chief whip Lee Anderson confirming that McMurdock has agreed to cooperate fully with an internal investigation into claims that are expected to be published by a national newspaper.
The allegations center on McMurdock’s use of the government’s Bounce Back loan scheme, designed to support struggling businesses during the pandemic. According to an investigation by The Sunday Times, McMurdock took out a total of £70,000 in loans through two companies he owned: JAM Financial Limited and Gym Live Health and Fitness Limited. The report raises questions about the eligibility of these loans, given the companies’ financial statuses at the time.
JAM Financial Limited reportedly had no employees and negligible assets before the pandemic but borrowed £50,000 under the scheme—the maximum loan amount available. Under Bounce Back rules, such a loan would require the company to have a turnover of at least £200,000, which the company did not appear to meet. Gym Live Health and Fitness Limited was dormant until January 31, 2020, yet it borrowed £20,000 in 2021, which would have required a turnover of £80,000 or £100,000 depending on the source. Neither company filed accounts or corporate filings after receiving the loans, a breach of the Companies Act that would typically lead to their removal from the Companies House register. However, the striking-off process was halted in February 2023 following an objection lodged by a third party.
McMurdock has denied any wrongdoing. In a statement posted on X (formerly Twitter), he said he requested the whip suspension as a "precautionary measure" and "for the protection of Reform UK." He also asserted, "I confirmed to the journalist 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." When approached by The Sunday Times, McMurdock cautioned the paper to be "very, very careful" and suggested that a "technical expert" would be needed to understand the complexities of the case.
McMurdock’s suspension leaves Reform UK with just four sitting MPs, following the earlier suspension of Rupert Lowe in March 2025. Lowe was suspended after allegations of making threats against then-party chairman Zia Yusuf, though the Crown Prosecution Service later decided not to press charges. The party briefly regained a fifth seat when Sarah Pochin won the Runcorn by-election in May 2025. However, McMurdock’s departure from the party whip means the party’s parliamentary presence has been reduced once again.
The MP’s political career has been marked by controversy even before these latest allegations. McMurdock, 39, entered Parliament in July 2024 after a razor-thin victory of just 98 votes over Labour in South Basildon and East Thurrock, wresting the seat from the Conservatives. Prior to politics, he had a career in banking, working for prominent firms such as Barclays Capital, Goldman Sachs, and Lehman Brothers, focusing on sectors like energy, infrastructure, and manufacturing.
His election was overshadowed by revelations that he had been convicted of assaulting his former girlfriend when he was 18. Initially, he described the incident as having "pushed" his partner, but court records later disclosed he was sentenced to 21 days in a young offenders’ institution for repeatedly kicking her. McMurdock has publicly apologised for the offence, calling it the "biggest regret" of his life. Reform UK leader Nigel Farage defended him at the time, describing McMurdock as a "good example to young tearaways" who "picked himself up from a terrible situation and made a big success."
The party itself has been plagued by internal strife since its surprising gains in the 2024 general election. The suspension of McMurdock follows a string of upheavals, including the temporary resignation and return of party chair Zia Yusuf, and the departure of Rupert Lowe, who went on to form a rival right-wing party, branding Farage a "viper." Several newly elected Reform councillors have also defected or resigned, some openly criticising the leadership.
Despite this turmoil, Reform UK’s popularity appears to be rising in the polls. A recent YouGov survey suggested that if a general election were held today, Nigel Farage’s party could win as many as 271 seats, potentially enabling him to form a minority government. This surge contrasts sharply with the party’s current parliamentary challenges and internal discord.
Labour has seized on the latest scandal to question the fitness of McMurdock to serve as an MP. Labour chairman Ellie Reeves demanded an urgent response from Farage regarding McMurdock’s financial conduct and highlighted the MP’s past conviction, underscoring the public’s right to know about the proper use of public funds by Reform UK representatives.
McMurdock’s suspension underlines the fragile state of Reform UK as it navigates the complexities of rapid political ascent amid ongoing controversies. With the internal investigation expected to take several weeks and likely led by an external party, the outcome remains uncertain. Meanwhile, McMurdock will sit as an independent, his future within the party—and Parliament—hanging in the balance.
