Rochdale Metropolitan Borough Council (19 004 521)

Category : Benefits and tax > Council tax

Decision : Upheld

Decision date : 05 Feb 2020

The Ombudsman's final decision:

Summary: Mr X complains the Council went back on agreement to give him a 100 percent discount on a council tax bill while his property was being refurbished. I have found the Council at fault. I am unable to make a finding as to what agreement was reached. However, I have found the Council should been clearer with Mr X about the terms of which discount was granted. I have also found that the Council should have told Mr X he could have appealed the Council’s decision about his discount to the Valuation Tribunal. I have made a recommendation the Council review its policy.

The complaint

  1. Mr X complains the Council agreed to give him a full discount on his council tax for three months, but then reduced this to one month, allowing only a 25 per cent discount after that period. He says he has been caused an injustice as he had budgeted for a three-month full discount and the Council reneged on their agreement.

Back to top

The Ombudsman’s role and powers

  1. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
  2. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal. However, we may decide to investigate if we consider it would be unreasonable to expect the person to appeal. (Local Government Act 1974, section 26(6)(a), as amended)
  3. The Valuation Tribunal (the Tribunal), deals with appeals against decisions on council tax liability and council tax support or reduction.
  4. We may investigate matters coming to our attention during an investigation, if we consider that a member of the public who has not complained may have suffered an injustice as a result. (Local Government Act 1974, section 26D and 34E, as amended)
  5. When considering complaints, if there is a conflict of evidence, we make findings based on the balance of probabilities. This means that we will weigh up the available relevant evidence and base our findings on what we think was more likely to have happened.
  6. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

Back to top

How I considered this complaint

  1. I spoke with the complainant.
  2. I researched the relevant law and guidance.
  3. I reviewed the Council’s response to my enquiries.
  4. Both Mr X and the Council have had the opportunity to comment on my draft decision.
  5. Ordinarily, Mr X would have had a right to take his complaint about the Council’s decision on his council tax discount to the Tribunal. However, I have decided to investigate because Mr X would have had to raise his complaint with the Tribunal no later than two months after the Council’s final decision on his complaint.

Back to top

What I found

Council tax discounts and the Tribunal

  1. Council policy says that empty properties that are uninhabitable due to major repairs and alterations can obtain a 100 per cent discount on their council tax for the first month they are empty. After that, they can obtain a 25 per cent discount for up to eleven months. If they remain empty after twelve months, they can be liable for a premium council tax charge.
  2. The Tribunal handles council tax related appeals on a number of issues, including council tax liability. This includes whether tax-payers are entitled to a discount on their council tax.
  3. It does not hear appeals on long term premium charges.

Background facts

  1. Mr X bought a house in August 2018. Mr X asked a council officer to view the property and decide if he was entitled to a council tax discount. The records show an officer visited. I am uncertain of the date of his visit (the Council and the complainant have given me different dates) but the officer’s notes show that he listed the work needed on the house. He said the property was uninhabitable.
  2. Mr X says it was agreed over the phone that he would receive a 100 per cent discount for three months. The Council accepts Mr X spoke to one of its officers on the phone at around the relevant time. However, it has not provided me with a record of any advice given. It says the officer Mr X spoke to was experienced and familiar with Council policy on discounts. It does not consider the officer would have agreed to the 100 per cent discount for three months as Mr X claims.
  3. The Council sent Mr X a bill on 6 September 2018. It said he was entitled to a 100 per cent discount from 22 August 2018 through to the beginning of the next tax year in March 2019.
  4. On 27 September 2018 the Council sent Mr X an adjusted bill. This time Mr X was told he only had an 100 per cent discount for the first month. Thereafter, he had only been given a 25 per cent discount.
  5. On 8 October 2018 another adjustment notice was sent to Mr X, also setting out instalments that were due. It said the first instalment of £136.18 was due. On 20 November 2018 the Council sent Mr X a reminder notice to pay this instalment.
  6. Mr X contacted the Council to say he had tenanted the property. He also queried why he had been sent a bill. He said he had an agreement with the Council that he would receive a 100 per cent discount for three months. He said this was evidenced by the bill he received on 6 September 2018.
  7. The Council agrees the bill set out a 100 per cent discount for the full tax year. But it says that when it issues bills, it is required to make assumptions.
  8. It says one of those assumptions is that if the amount due is subject to a discount on the day the bill is issued, it will continue to be subject to the same rate of discount for the whole year. It says this is irrespective of whether a future change in circumstances is known about at the time the assumption is made. It says that then, once the chargeable amount changes after a demand has been issued, due to a change in discount entitlement, it then sends what is called an adjustment notice.
  9. At the end of the month, the bill was adjusted to reflect the Council’s policy that Mr X, in accordance with the Council’s policy, was then only entitled to a 25 percent discount.
  10. Mr X disagreed. He was not informed of his right to appeal to the Tribunal.
  11. The Council says Mr X does not have that right. It says this is because the Council’s policy for empty properties is determined on a local level by each authority.
  12. Mr X paid the council tax demanded to avoid court costs.

Analysis

  1. The Council’s policy says that when a person is seeking a discount in the first year of ownership of an uninhabitable property, he/she, can be given an 100 per cent discount in the first month, followed by a 25 per cent discount in following months.
  2. But Mr X is right to say that the 6 September 2018 bill indicates a different agreement was reached between himself and the Council. It says he would receive a 100 per cent discount until 31 March 2019.
  3. I have not been able to listen to the call Mr X had with a council officer when arranging his discount because the Council does not have a record of the call. The only evidence of the agreement is therefore the bill sent to Mr X.
  4. I accept the Council’s systems may send bills in the way set out in my para 22 above. However, if its systems do not properly reflect arrangements made with service-users, it should keep clear records setting out any agreement reached. It should send a letter of clarification when a bill appears to say something that does not reflect the actual position. This will mean both parties to a payment arrangement are clear of its terms.
  5. The Council’s policy is clear, but the Council sent Mr X a bill which, on its face, says Mr X was to have a 100 per cent discount until the end of the financial year. Therefore, I am unable to be certain of the terms of the agreement reached. But whatever the actual position was, the Council should have been clearer. It was not and this has caused confusion. This is fault. I have made a recommendation to remedy this.
  6. I also find the Council at fault for not alerting Mr X that he could appeal the Council’s decision to the Tribunal. This is fault. As stated above, Mr X had a right to take his case to the Tribunal. I have made a recommendation to remedy this.

Back to top

Recommended/ agreed action

  1. Within one month of my final decision, the Council should
      1. Apologise to Mr X for the way it handled his discount and for failing to signpost him to the Tribunal when he disputed the Council’s decision.
      2. Pay Mr X the sum of £150 to acknowledge the frustration and confusion caused by the Council’s approach to billing.
      3. Review its policy on discounts on council tax for empty properties, ensuring the service-user is sign posted to the Tribunal if they wish to appeal a decision in relation to discounts on council tax.
      4. Consider reviewing its systems so that if agreements are reached on council tax payments, any agreement is communicated clearly to the service-user.
  2. The Council should provide evidence to the Ombudsman that all of the above recommendations have been acted on.

Back to top

Final decision

  1. I have found the Council at fault and made recommendations to remedy that fault. I have now completed my investigation.

Back to top

Investigator's decision on behalf of the Ombudsman

Print this page

LGO logogram

Review your privacy settings

Required cookies

These cookies enable the website to function properly. You can only disable these by changing your browser preferences, but this will affect how the website performs.

View required cookies

Analytical cookies

Google Analytics cookies help us improve the performance of the website by understanding how visitors use the site.
We recommend you set these 'ON'.

View analytical cookies

In using Google Analytics, we do not collect or store personal information that could identify you (for example your name or address). We do not allow Google to use or share our analytics data. Google has developed a tool to help you opt out of Google Analytics cookies.

Privacy settings