Reform UK MP James McMurdock has suspended himself from the party over allegations expected to be published in a national newspaper.
The 39-year-old was elected as the MP for South Basildon and East Thurrock in Essex last year.
Fellow Reform MP Lee Anderson said the claims relate to “business propriety during the pandemic”.
In a statement on X, Anderson said: “I 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.
“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 any further at this moment.”
The Sunday Times said McMurdock was suspended over its investigation into claims relating to £70,000 in loans he took out under the Government’s Bounce Back scheme.
In a post on X on Saturday afternoon, McMurdock claimed that he received a phone call on Thursday evening from a journalist “who followed an extremely aggressive and clumsy line of questioning where he confused assets, profit, and turnover”.
McMurdock went on to claim that their “off the record” phone call has been made public.
He added: “Yesterday (Friday) lunch time I received an email from the same journalist asking me to provide detailed information relating to businesses that ceased trading some years ago.
“The deadline to provide that information was 6pm the same day. 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.
“Facts: My business dealings have been reviewed by ICAEW qualified professionals. Absolute compliance was confirmed!
“My Register of Interests was completed with the support of IPSA! As a precautionary measure, and for the protection of ReformUK, I have asked to have the whip suspended temporarily.”
McMurdock won his seat at last year’s general election by 98 votes, beating Labour into second place, and taking the seat from the Conservatives.
McMurdock is the youngest elected MP in Reform’s history. He grew up in Basildon and previously worked in finance, including roles at Barclays, Goldman Sachs and Lehman Brothers.
On winning the seat, McMurdock said last year: “It’s an absolute privilege and the gravity of responsibility is not lost on me.”
Reform gained five MPs last year as the party surged to more than 14 per cent of the vote.
The party also won almost 700 council seats at the May elections, taking control of eight local authorities.
But it has also been beset by regular controversy and infighting in recent months.
In March, MP Rupert Lowe was suspended over allegations he bullied female employees and made threats to party chairman Zia Yusuf.
The Crown Prosecution Service said in May it would not be pursuing criminal charges against Lowe, who denied any wrongdoing and now sits as an independent.
Last month, Yusuf quit the party only to return two days later.
2025-07-05T12:55:01Z