Summary: Miss X complained the Council failed to produce a Council Tax bill for her property from 2016 until February 2020 despite her contacts. Miss X says this resulted in a large debt owed on her Council Tax account. The Ombudsman found fault with the Council failing to register Miss X’s Council Tax account. The Council agreed to provide Miss X with an apology and a payment of £300 to reflect the delays and distress caused.

The complaint

1. Miss X complained the Council failed to produce a Council Tax bill for her property from 2016 until 2020. Miss X says she contacted the Council on repeated occasions from 2016 to 2020. Miss X says this resulted in a large debt owed on her Council Tax account.
2. Miss X also complained the Council failed to manage her contacts and complaints since 2016. Miss X says the actions of the Council caused her stress and affected her health.

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The Ombudsman’s role and powers

3. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
4. 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)

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How I considered this complaint

5. I have considered all the information Miss X provided. I have also asked the Council questions and requested information, and in turn have considered the Council’s response.
6. The Council accepted my recommendations. Miss X provided comments on my draft decision. I considered Miss X’s comments before making my final decision.

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What I found

The law

7. A council shall serve a completion notice if it believes completion of a development can be expected within 3 months. A council may also serve a notice if it comes to its attention a building has been completed. (Local Government Finance Act 1988, Schedule 4A)
8. The Local Government Finance Act 1992 does not set any time limit on backdating liability for Council Tax. But a council should produce billing as soon as practicable. (Council Tax (Administration & Enforcement) Regulations 1992, Regulation 19)
9. The time limit for recovery action is six years from the date on which the cause of the recovery action started. (The Limitation Act 1980, Section 9(2))
10. The case of Regentford Ltd v Thanet District Council ([2004] EWHC 246 (Admin)) clarified the six-year limitation period from the Limitation Act 1980. It advised this date starts from the date of service of the notice, or demand, to pay from a council and not the start date of the charges.

Council corporate complaints procedure

11. The Council defines a complaint as an expression of dissatisfaction about its service that requires a response from it.
12. The Council will acknowledge a complaint within one working day. Where possible, the Council will try to resolve a complaint straight away without the need to go through its complaints procedure. The Council will do this in agreement with the person complaining.
13. If the Council cannot resolve the complaint within three working days, it will investigate the complaint at Stage 1 of its procedure. The Council will provide a Stage 1 complaint response within 20 working days.
14. If a person is unhappy with the Stage 1 response, they can request consideration at Stage 2 of the Council’s procedure. The Council suspended Stage 2 of its complaint procedure during the Covid-19 pandemic.

Our guidance on remedies

15. We expect bodies in jurisdiction to treat people fairly and with respect, and not to expose the public to unnecessary distress, harm or risk as a result of their actions or inactions. Such injustice cannot generally be remedied by a payment, so we usually seek a symbolic amount to acknowledge the impact of fault on the complainant. The amount depends on the circumstances of the case.
16. When we assess distress, we consider the complainant’s individual circumstances (such as their state of health and age). In reaching a view on remedy we will consider all the circumstances including:
• the severity of the distress;
• the length of time involved;
• the number of people affected (for example, members of the complainant’s family as well as the complainant);
• whether the person affected is vulnerable and affected by distress more severely than most people; and
• any relevant professional opinion about the effects on any individual.
17. A remedy payment for distress is often a moderate sum of between £100 and £300. In cases where the distress was severe or prolonged, up to £1,000 may be justified. Exceptionally, we may recommend more than this.

What happened

18. Miss X contacted the Council on 14 June 2016 to advise she had moved into her property. The Council told Miss X to use its online application form for Council Tax. Miss X completed the Council’s online application form on this date. Miss X provided the Council with her details, contact details, address details and details of her landlord. Miss X also confirmed her move in date was 25 May 2016.
19. Miss X says she contacted the Council on 4 August 2016, 22 August 2016 and 5 September 2016 to follow up on her Council Tax application.
20. Miss X applied to purchase her property from her housing association in June 2019. Miss X’s housing association advised her that her property was not registered.
21. Miss X’s housing association told the Council about Miss X’s property on 7 February 2020. The housing association said Miss X had lived at the property since 30 May 2016.
22. The Council raised a valuation request with the Valuation Office who added Miss X’s property to the valuation list.
23. The Council created Miss X’s Council Tax account and sent her a bill totalling £4,674.47 for her Council Tax charges backdated to 30 May 2016.
24. Miss X complained about the Council Tax bill on 24 February 2020. The Council discussed Miss X’s complaint with her on 26 February 2020. The Council advised Miss X’s property did not exist on its system until February 2020 so the online form would not have registered her for Council Tax in 2016. The Council apologised for this. Miss X arranged to come into the office on 28 February 2020 to arrange single person discount. Miss X agreed to withdraw the complaint.
25. Miss X attended the Council office on 28 February 2020. The Council advised it would contact Miss X about whether she would be liable for the full bill. The Council did not re-open Miss X’s complaint or contact Miss X further.
26. The Council sent Miss X a Council Tax reminder letter on 26 June 2020 seeking payment of the full balance.
27. Miss X complained to the Council on 2 July 2020. The Council acknowledged Miss X’s complaint but did not respond.
28. The Council sent Miss X a letter advising of potential court summons for the Council Tax charges on 30 October 2020.
29. Miss X complained to the Council on 4 November 2020. Miss X said:
• The Council had not contacted her as promised despite previous complaints.
• The housing association told her the Council could not backdate Council Tax before the Valuation Office added the property to the valuation list.
• She did not want to pay for Council Tax before 24 February 2020.
30. The Council provided its Stage 1 response on 6 November 2020. The Council said:
• It apologised for not responding to Miss X’s complaint from 2 July 2020.
• It had no records of contact from Miss X before 24 February 2020.
• As Miss X moved into the property on 30 May 2016, she was liable for Council Tax from this date and not the date of registration of the property.
• Miss X could go to Stage 2 of the Council’s complaint procedure if unhappy with the Stage 1 decision.
31. Miss X asked the Council to take her complaint to Stage 2 of its complaint process on 20 November 2020. The Council told Miss X it did not have a Stage 2 of its corporate complaints process because of the Covid-19 pandemic. The Council advised Miss to approach the Local Government and Social Care Ombudsman.
32. The Council sent a summons letter to Miss X for the Council Tax balance on 11 January 2021.
33. Miss X complained the Council had not applied her single person discount on 18 January 2021. The Council confirmed it had applied the single person discount on 20 January 2021. Miss X subsequently paid the outstanding balance owed on her Council Tax account.

Analysis

Delay in Council Tax billing

34. Miss X complained the Council took nearly four years to produce a Council Tax bill resulting in a large balance owed to the Council.
35. The Council says it has no record of contact from Miss X before February 2020, after it issued the Council Tax bill. The Council also says it had no record of the property before contact from the housing association in February 2020.
36. The Council should serve a completion notice and register a property if completion of a development can be expected in three months.
37. The Council’s planning portal shows it approved an application to build Miss X’s property, with eleven others on her street, in 2013. The Council also discharged a condition confirming the building work had begun on these properties in 2014.
38. The Council confirmed it received details for ten other new build properties on Miss X’s street from her housing association in 2016. This included the property numbers either side of Miss X’s.
39. The Council was aware of the application for twelve houses on Miss X’s street and the housing association directly told it about completion of ten of these houses. The Council should have expected completion of Miss X’s house in 2016. The Council failed to check for completion of the remaining two houses in 2016 or verify the information from the housing association.
40. Miss X also provided evidence of completing an online application form for Council Tax on 14 June 2016. Miss X provided all relevant information on this form to enable the Council to set up a Council Tax account for her property on this date.
41. The Council says the online application form would not have worked since Miss X’s property was not registered on the valuation list. While the online application form may not have worked, Miss X used a tool provided by the Council to provide details to set up a Council Tax account. Miss X also used this tool after the Council directed her to it on a telephone call.
42. The Council’s online application form failed to identify to either Miss X or the Council that her property was not registered on the valuation list. The Council’s online application form also failed to provide Miss X’s details to the Council’s to enable it to act. This is the fault of the Council.
43. The Council should have been aware of the completion and tenancy of Miss X’s property by June 2016.
44. The delay from the Council in registering Miss X’s property and setting up a Council Tax account until February 2020 is fault.
45. This fault caused Miss X to accrue a balance of nearly four years’ worth of Council Tax charges. While the delay was the fault of the Council this does not invalidate the Council Tax charges. The Council is entitled to backdate the Council Tax charges to 30 May 2016 and has no obligation to reduce these charges.
46. However, the production of a large balance has caused Miss X distress. The Council also did not offer any repayment terms to Miss X and demanded payment of the full outstanding balance. This will have added to Miss X’s distress and placed a large financial burden on her by having to pay this full balance.

Complaint handling and collection activities

47. Miss X complained the Council failed to manage her contacts and complaints.
48. Miss X did not contact the Council in writing or by email before February 2020 to raise a complaint, so there is no written confirmation of her contacts. The Council has no record of receiving calls from Miss X and Miss X has not been able to evidence these to me. 
49. The first contact of complaint evidenced is in February 2020. The Council tried to resolve Miss X’s complaint in February 2020 informally and agreed with Miss X to close the complaint on 26 February 2020. The Council acted in line with its corporate complaints procedure, this is not fault.
50. However, the Council failed to carry out promised actions from the meeting on 28 February 2020. This is fault. This fault resulted in the Council not addressing Miss X’s complaint, not applying the single person discount to her Council Tax account and Miss X not paying the outstanding balance owed.
51. The Council also failed to progress Miss X’s July 2020 complaint through its complaint procedure. This is fault. This fault caused added delay to the handling of Miss X’s complaint and payment of Miss X’s outstanding balance.
52. When Miss X complained in November 2020, the Council responded in line with its complaint procedure and directed Miss X to the Local Government and Social Care Ombudsman. I do not find fault with the Council’s actions in November 2020.
53. The Council added to Miss X’s distress and frustration from the delayed Council Tax billing through the handling of her contacts and complaints since February 2020. The Council caused added delay of nine months.
54. The Council also sent letters warning of court summons despite failing to address Miss X’s complaint about the same matter or apply the relevant single person discount. This added to Miss X’s distress.

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Agreed action

55. Within one month of the Ombudsman’s final decision the Council will:
• pay Miss X £300 to remedy the injustice caused by the production of a large backdated Council Tax bill in February 2020, the delay and failure to address Miss X’s contacts and complaints from February 2020 to November 2020 and the resultant court summons letters issued, all of which caused Miss X avoidable time, trouble and distress;
• apologise to Miss X for the delay and distress experienced.
56. Within six months of the Ombudsman’s final decision the Council will:
• update its online Council Tax application form process to ensure that applications for unlisted properties, or properties not currently on the valuation list, are raised with the relevant department to ensure the Council registers these properties with the Valuation Office and sets up Council Tax accounts for these properties.

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Final decision

57. There was fault by the Council as the Council has agreed to my recommendations, I have completed my investigation.

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Investigator's decision on behalf of the Ombudsman