If McMurdock rejoined Reform it would take the total number of the party’s MPs to nine.
Labour criticised Reform’s handling of McMurdock in a statement: “After serious allegations surfaced against James McMurdock over his financial affairs, Nigel Farage did nothing.
“If Reform are intent on letting him back into their party, it will tell you everything you need know about Farage’s judgement.
“Reform simply cannot be trusted to uphold the high standards expected in public life.”
McMurdock won his seat in Essex from the Conservatives in the July 2024 General Election, beating Labour by just 98 votes.