A Reform UK MP has removed the party whip from himself, leaving the party with just four MPs in the Commons.

James McMurdock, the MP for South Basildon and East Thurrock, today telephoned party chief whip Lee Anderson with the news he was leaving.

The Sunday Times published a story today which alleged Mr McMurdock took out Covid loans totalling £70,000 relating to two businesses.

Mr Anderson said in a statement: “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. 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 said in a statement he “asked to have the whip suspended temporarily” as a “precautionary measure, and for the protection of Reform UK”.

Referring to a conversation with a reporter, he said: “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.”

He said his “business dealings have been reviewed by ICAEW qualified professionals” and “absolute compliance was confirmed”.

Mr McMurdock won his formerly Tory-held seat by 98 votes in the July general election, with Labour in second place.

His departure from Reform’s ranks comes as the party strives to professionalise its operations. In March, Rupert Lowe had the whip removed; the Great Yarmouth MP now sits as an Independent.

There was further drama last month when Zia Yusuf quit as party chairman, only to return in a new role with a focus on uncovering local government inefficiency.

Despite the turbulence, Reform enjoys a double-digit lead over the Conservatives. Politico’s poll of polls puts Reform on 29%, ahead of Labour (23%), the Conservatives (17%), the Liberal Democrats (15%) and the Greens (10%).

Former Conservative leader Boris Johnson, meanwhile, told a Swiss magazine the best way to deal with Nigel Farage is to ignore him.

He said: “My strategy with the individuals that you mention is don’t talk about them… Talk about what you are going to offer the people.

“I think Conservatives need to focus on the economy and making life better for people and giving people opportunity. I think if we concentrate on the economy we mount full spectrum warfare on all the things that Starmer is doing wrong, we will win.”

Attention previously focused on Mr McMurdock when it was reported he had been convicted of assaulting an ex-girlfriend in 2006 outside a nightclub in Chelmsford. He reportedly spent time in a young offender’s institution.

Mr McMurdock last year addressed the events, saying he was 19 at the time and he had “immediately” handed himself over to the police.

In a statement, he said: “It was the realisation of what happened that night and the shame I felt over it that led me to turn my life around.”

Party leader Nigel Farage said this was a “story of genuine rehabilitation”.

Ellie Reeves, who chairs the Labour party, today claimed “Nigel Farage and Reform UK owe the public an urgent answer” about Mr McMurdock’s conduct.

She said: “Does Farage think he is fit to be an MP?”