Summary: Mr X complained the Council has overcharged him Council Tax and failed to consider his appeals or application for a Discretionary Council Tax Reduction. We found fault with the Council for delaying its decisions on Mr X’s applications and appeals about his Council Tax. The Council agreed to provide Mr X with a list of information it needs and provide a decision on Mr X’s application and appeals. The Council also agreed to consider inserting timeframes into its Council Tax policies. The Council agreed to apologise to Mr X and pay him £500 for the avoidable distress, frustration and inconvenience caused.

The complaint

1. Mr X complained the Council has overcharged him Council Tax and failed to consider his application for a Discretionary Council Tax Reduction and Single Person Discount. This has caused Mr X financial difficulty and stress.
2. Mr X also complained the Council has ignored his complaints since February 2021 and issued court summons which Mr X paid. Mr X says the Council promised to refund this payment but has failed to do so. This has caused Mr X further financial difficulty, inconvenience and distress.

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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. We consider whether there was fault in the way an organisation made its decision. If there was no fault in the decision making, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
5. If we are satisfied with an organisation’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

6. I have considered all the information Mr X provided and discussed this complaint with him. I have also asked the Council questions and requested information, and in turn have considered the Council’s response.
7. Mr X and the Council had opportunity to comment on my draft decision before I made my final decision.

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What I found

Council Tax

8. Council tax is a combination a tax on the value of property and a tax on individuals living in the property.
9. The occupier or owner is liable to pay Council Tax. An occupier with a freehold or leasehold interest in the property is the primary person responsible for Council Tax. This is followed by an occupier with no interest and then ultimately the owner of the property. (Local Government Finance Act 1992, section 6(2))
10. If a person disputes liability for Council Tax at a property, they can appeal this in writing to the Council. If the Council rejects a person’s appeal, the person can appeal to the Valuation Tribunal within two months of the Council’s rejection.
11. A council has discretion to apply reductions and exemptions for Council Tax. A council will detail what Reductions and exemptions it applies. Councils are under a duty to “take reasonable steps to ascertain” whether any discounts or exemptions should apply to taxpayers. (Council Tax (Administration and Enforcement) Regulations 1992 (regulation 14))

Council’s discounts and reductions on Council Tax

12. The Council says a person will have to pay Council Tax for their property when it is empty in most cases. The Council allows some exemptions to this.
13. One of the Council’s previous exemptions is when a property is empty and unfurnished or uninhabitable because of renovation works. Before 1 April 2022, the Council allowed a 50% discount to Council Tax bills for up to 12 months if a property was uninhabitable. If a property remained empty a 25% reduction was applicable for the following 12 months. The Council stopped offering these reductions on 31 March 2022.
14. If a property remained empty beyond two years, the Council will apply an Empty Property Premium. This doubles a person’s Council Tax if the property remains empty between two and five years.
15. The Council also provides a 25% reduction to Council Tax if a property is only occupied by a single adult.

Council Tax appeals

16. The Council says a person can appeal against a decision it has made about Council Tax if they believe their property is exempt or the Council has made a mistake in calculating their bill.
17. The Council says a person should write to it to explain their appeal. The Council says if a person is not satisfied with the Council’s response to their appeal, or the Council has not made a decision within two months, a person can appeal to the Valuation Tribunal.

Discretionary Council Tax payment scheme

18. The Council operates this scheme under section 13A(1)(c) of the Local Government Finance Act 1992.
19. This policy enables the Council to make discretionary decisions on a person’s Council Tax payments in exceptional circumstances.
20. The Council says it will consider applications from any resident for a Discretionary Council Tax payment who is liable for Council Tax.
21. As a discretionary scheme, the Council has no obligation to provide any form of payment or discount under this scheme. The Council can make decisions about who it pays and for how long.
22. The Council says regardless of if a person has applied, or appealed, for a Discretionary Council Tax payment they should continue to pay their Council Tax.

What happened

23. Mr X and his wife lived at Property 1. In February 2019 they bought Property 2 and began renovations works of this property. Both Mr X and his wife remained living at Property 1.
24. Mr X told the Council that Property 2 was undergoing substantial renovation works. The Council determined the property was empty and uninhabitable and applied a 50% reduction to Mr X’s Council Tax to reflect this status.
25. In February 2020, the Council reduced Mr X’s Council Tax reduction on Property 2 to 25% for the next 12 months.
26. In February 2021, the Council applied the Empty Property Premium to Property 2 because it had remained empty for two years.
27. Mr X contacted the Council to query the Empty Property Premium. Mr X said this property was much larger than the average house and therefore not possible to renovate in two years. Mr X also said the Covid-19 Pandemic had impacted his ability to complete the renovation works including the Council’s building control team refusing to come to site on four occasions. Mr X asked the Council to waive the Empty Property Premium for the next 12 months.
28. The Council responded to Mr X on 1 March 2021 and told him that its policies do not make provision for discounts on properties which have been empty for more than two years. The Council accepted the exceptional circumstances presented by Covid-19 but said this did not override its policies.
29. Mr X appealed the Council’s decision on 11 March 2021 and asked the Council to escalate this matter. Mr X chased the Council twice in March 2021 before the Council confirmed it had passed his concerns to an appeals officer.
30. Mr X continued to chase the Council, including six separate contacts from 1 April 2021 to August 2021. Within these contacts, Mr X asked the Council to log a formal complaint on 12 April 2021.
31. In July 2021, the Council placed a hold on any chasers to Mr X for outstanding Council Tax.
32. On 13 August 2021, the Council apologised to Mr X for failing to provide a formal reply to his appeal. The Council said it was dealing with a backlog and it was aware of Mr X’s appeal. The Council recommended Mr X applied for a Discretionary Council Tax Reduction. The Council said it would place his appeal on hold until Mr X gets the result of the Discretionary Council Tax Reduction application.
33. Mr X told the Council on 14 September 2021 he did not wish to make a Discretionary Council Tax Reduction application. Mr X reiterated his concerns about the Council’s delays to his renovation works.
34. In December 2021, the Council released the hold on Mr X’s Council Tax account and sent chasers seeking payment.
35. Mr X contacted the Council for an update on his appeal on 6 and 21 December 2021 in response to these chasers.
36. On 22 December 2021, the Council told Mr X it cannot remove the Empty Property Premium. The Council said this would need to fall into a Discretionary Council Tax Reduction and encouraged Mr X to make an application. The Council said if Mr X does not wish to make an application for Discretionary Council Tax Reduction it would provide a response to Mr X’s appeal and provide details of the Valuation Tribunal. The Council said even though Mr X has appealed the Council Tax it still needs full payment meanwhile otherwise it will continue to chase for payment. The Council applied a hold until the end of January 2022 on payment.
37. Mr X applied for a Discretionary Council Tax Reduction on 2 January 2022. Mr X highlighted his previous concerns about delays caused by Covid-19 and the Council’s building control team. Mr X also told the Council he had moved into Property 2 and his wife remained in Property 1 since 4 December 2021. Mr X asked the Council to apply a 25% single person discount to both properties.
38. Mr X liaised with the Council about his Discretionary Council Tax Reduction application through to 23 March 2022. On this date the Council placed a further months hold on his Council Tax account and asked for further information from Mr X.
39. Mr X did not respond to the Council’s contact as the Council asked to recall the email from 23 March 2022. The Council issued a Court Summons for unpaid Council Tax in June 2022. Mr X complained to the Council and made a Subject Access Request (SAR) on 26 June 2022.
40. In July 2022, the Council asked for evidence of his and his wife’s living arrangements. The Council also confirmed it had withdrawn the Summons for the court hearing and advised it would refund the £85.50 Court Summons free Mr X paid on receiving bank details.
41. On 13 July 2022, Mr X provided his bank details to the Council for the refund of the Court Summons fee and complained about the delays with the Council over his appeals and applications. Mr X also queried why the Council needed evidence to support where he and his wife lived.
42. An internal note from the Council said it had decided to cover the Empty Property Premium for Property 2 up to 31 March 2022. The Council noted it made this decision because of exceptional circumstances surrounding the Covid-19 pandemic including delays with its Building Control team.
43. On 10 August 2022, the Council responded to Mr X’s contact. The Council said:
• If a person has more than one property it needs to decide where the person’s sole or main residence is. The Council said it needed information from Mr X to decide this.
• It had decided to remove the Empty Property Premium from Property 2 until 31 March 2022 because of the exceptional circumstances involving the Covid-19 pandemic. The Council said it had not applied the discount yet because it had not made a decision on Mr X’s single person discount request.
• Mr X may not wish for a SAR depending on the result of his liability review and Discretionary Council Tax Reduction and asked if Me X still wanted this.
44. On 11 August 2022, a Council Officer attended Property 2 and said could see no signs of occupation from the outside. The Council Officer tried to visit Property 1 and noted two cars on the drive but the Council Officer visited the wrong property.
45. Mr X reiterated his request for a SAR on 24 August 2022. Mr X also provided details about the furnishings at Property 2, said he was registered to vote at Property 2 and this was also the address he had registered with his work, doctor and dentist.
46. On 24 October 2022, the Council told Mr X it needed to arrange an appointment with him to inspect the inside of Property 2. Mr X liaised with the Council and advised it would not issue any refund decided through the Discretionary Council Tax Reduction until it had made a determination on the single person discount. The Council also sent Mr X to result of his SAR.
47. The Council refunded Mr X the Court Summons cost on 10 November 2022 and reiterated the request to inspect Property 2. Mr X queried why the Council needed to inspect the property and why the information he had provided was inadequate.
48. On 8 December 2022, the Council told Mr X it had stopped looking into Mr X’s concerns about his Council Tax subject to the outcome of the Local Government and Social Care Ombudsman’s (the Ombudsman’s) investigation.

Analysis

Council Tax decisions and appeals

49. Any dispute about liability for Council tax is a matter for the Valuation Tribunal and not the Ombudsman. The tribunal is an expert impartial body whose decisions are binding on a Council.
50. The Council’s policy says a person can approach the Valuation Tribunal after it has made a decision on an appeal or after two months. There are no set timeframes within the Council’s appeal policy for when it should complete an appeal review. However, based on the two-month timescale before approaching the Valuation Tribunal, it is fitting to consider the Council would expect to provide a response to an appeal within two months.
51. Mr X appealed the Council’s decision about his Council Tax on 11 March 2021.
52. The Council has failed to provide Mr X with a decision about this appeal up to the date of the Ombudsman’s decision.
53. The Council has failed to provide a decision 20 months outside this two-month timescale detailed in its policy; this was fault.
54. Mr X also sought a single person discount for both Property 1 and Property 2 in January 2022, backdated to December 2021. The Council failed to investigate or request evidence from Mr X until July 2022; this was fault.
55. The Council has also failed to decide whether to award a single person discount to both Property 1 and Property 2 to the date of the Ombudsman’s decision. This was fault.
56. The Council says its does not have the necessary evidence to change liability. While this may be the case, the evidence provided shows that Mr X has tried to work with the Council and usually provided information to the Council on request. While there are occasions of failure to respond by Mr X, or missing information, I would not consider this is through any lack of cooperation by Mr X.
57. The Council should provide a list of the outstanding pieces of information it needs from Mr X to make a decision on both his March 2021 appeal and his single person discounts. The Council should then provide a decision on both these matters regardless of whether Mr X provides this information. This decision should confirm Mr X’s appeal rights to the Valuation Tribunal. I see no reason why Mr X should be prevented from approaching the Valuation Tribunal with his concerns.

Discretionary Council Tax Reduction

58. Mr X applied for Discretionary Council Tax Reduction in January 2022. The Council’s policy provides no timescale for considering an application for Discretionary Council Tax Reduction.
59. In the absence of a timescale in the Council’s policy, the Ombudsman must consider a timescale which would be suitable.
60. The Council took until July 2022 to decide to remove the Empty Property Premium from Property 2. This six-month timescale is longer than the Ombudsman would expect for such a decision. This was fault.
61. While the Council made its decision in July 2022, it has not paid the award because of the issues about Mr X’s request for a single person discount. The Council is correct the award of a single person discount to Mr X’s Council Tax account would impact the value of the award for Discretionary Council Tax Reduction. I do not find fault with the Council for failing to make this payment.
62. The Council should confirm in writing to Mr X its Discretionary Council Tax Reduction decision and confirm that it will provide this reduction on making a decision on his single person discount application.

Delays

63. As detailed in paragraphs 51 to 55 and paragraph 60, Mr X had experienced delays related to the Council’s decision making on his Council Tax applications and appeals.
64. The Council has further compounded these delays by not progressing with its consideration of the appeals because of the Ombudsman’s investigation. An investigation with the Ombudsman does not prevent a Council from needing to continue to provide its duty. Stopping Mr X’s appeal while the Ombudsman investigated was fault. This fault has caused further delays for Mr X.
65. Mr X experienced a similar delay from August 2021 to December 2021. In August 2021, the Council said it would place his appeal on hold subject to Mr X making an application for Discretionary Council Tax Reduction. Despite Mr X saying he did not wish to make an application for this, the Council kept his appeal on hold; this was fault.
66. Mr X has also chased the Council often since March 2021 for responses to his appeals and applications without success in prompting a response. Additionally, Mr X has asked the Council to lodge a formal complaint on several occasions, and as early as 12 April 2021, but the Council has failed to do so.
67. The Council also delayed outside the statutory timescales in providing Mr X with a response to his SAR. Mr X made his request on 26 June 2022 which gave the Council until 26 July 2022 to comply with this request. The Council only provided Mr X with information, which was not the full SAR documents, on 24 October 2022 which was three months outside the statutory timescales. This was fault.
68. The Council’s handling of Mr X’s applications, appeals and complaints has been poor and impacted by significant delays; this was fault. This fault has caused Mr X avoidable frustration and distress and put him to avoidable time and trouble for nearly two years.

Debt collection

69. Mr X did not pay the full Council Tax for Property 2 following it becoming due in April 2021 because he disputed the level of Council Tax owed. The Council sent Mr X various debt collections letters in 2021 and the start of 2022 leading to a Court Summons. While Mr X did make sporadic payments towards the Council Tax account, on the date the Council issued the Court Summons, Mr X still owed £1,111.33 to the Council.
70. While it is understandable Mr X would not wish to pay for Council Tax when he is disputing this, the Council is still entitled to receive payment.
71. The Council’s policies says a person should continue to pay their Council Tax even if they have appealed it. Similarly, the Valuation Tribunal advises that payment of Council tax should be made until a Valuation Tribunal decides otherwise.
72. Since the Council was entitled to receive full payment for the Council Tax and Mr X was not providing this, it was entitled to send chasers to Mr X and ultimately take the matter to Court. I cannot find fault with the Council for these actions.
73. However, the Council has cancelled the Court action and refunded the cost of this to Mr X. The Council has applied no other debt collection charges to Mr X’s account. The Council has done this because of its delays in handling this matter.
74. Given the Council was allowed to take the action it did, I consider the Council has provided a suitable resolution to this part of the complaint. I do not recommend further action from the Council to address this part of the complaint.

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Recommended action

75. Within one month of the Ombudsman’s final decision the Council should:
• Provide Mr X with an apology and a payment of £500. This is to address the avoidable distress and frustration Mr X experienced and the avoidable time and trouble he has been put to through the Council’s delays and mismanagement of his Council Tax applications and appeals since March 2021.
• Provide a list of the outstanding pieces of information it needs from Mr X to make a decision on both his March 2021 appeal and his request for single person discounts at both Property 1 and Property 2.
• Confirm in writing to Mr X its Discretionary Council Tax Reduction decision and confirm that it will provide this payment reflective of this decision once it makes a decision on his single person discount application, as detailed in paragraph 76.
76. Within two months of the Ombudsman’s final decision the Council should:
• Provide Mr X with a decision about his March 2021 appeal and his request for single person discounts at Property 1 and Property 2. The Council should confirm Mr X’s right to approach the Valuation Tribunal on both these decisions.
• Pay Mr X the resultant Discretionary Council Tax Reduction payment following on from its decision about Mr X’s entitlement to single person discount.
77. Within three months of the Ombudsman’s final decision the Council should:
• Consider inputting timescales into its policies for completing consideration of applications and appeals relating to Council Tax. Namely, applications for single person discount and Discretionary Council Tax Reductions and appeals made to the Council about Council Tax.
78. The Council should provide us with evidence it has complied with the above actions.

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Final decision

79. 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