Summary: Mr and Mrs X complained about a backdated Council tax bill. We find the Council at fault for delays in issuing the bill and for failing to inform Mr and Mrs X of their appeal rights. The Council has apologised to Mr and Mrs X and acted to prevent recurrence.

The complaint

1. Mr and Mrs X complain the Council sent them a backdated Council tax bill. They say they were not aware they were liable for Council tax payments, and the monthly payments the Council have requested are too high. They feel if they were to make these payments, they would have no quality of life. Mr and Mrs X would like the Council to consider a lower monthly payment.

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The Ombudsman’s role and powers

2. 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 significant injustice, or that could cause injustice to others in the future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. We consider whether there was fault in the way an organisation made its decision. If there was no fault in how the organisation made its decision, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
4. The law says we cannot normally investigate a complaint when someone has a right of appeal, reference or review to a tribunal about the same matter. However, we may decide to investigate if we consider it would be unreasonable to expect the person to use this right. (Local Government Act 1974, section 26(6)(a), 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 spoke to Mr and Mrs X about their complaint and considered information they provided. I also considered information received from the Council.
7. Mr and Mrs X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

What happened

8. In 2014 the Council received an application from a developer for street naming and numbering for official addressing. The Council said it could not gain access to the site to check on the progress at this time but periodically drove past, wrote to the developer and dropped calling cards without response.
9. In 2016, Mr and Mrs X bought their property from the developer. The Council has said Land Registry documents were not updated, so the details of the sale were not available at that time.
10. Mr and Mrs X did not receive council tax bills after purchasing their property, but have said the developer told them they would not be billed until the rest of the development was completed.
11. In 2019 the Council contacted the developer to ask who owned the property but received no response.
12. The Council contacted the developer again in 2022 and was told Mr and Mrs X had purchased the property 2016. At this point the Council generated a council tax bill, backdated to the point of purchase in 2016, for £9,211.48 and sent this to Mr and Mrs X.
13. The Council obtained a court order for the debt, but agreed Mr and Mrs X could pay in instalments. The Council asked Mr and Mrs X to provide details of their set income and expenditure so it could assess their finances. Having done so, the Council asked Mr and Mrs X to repay £375 a month. Mr and Mrs X said they could not afford this and offered to repay £100 per month instead, but the Council refused this.
14. Mr and Mrs X say the stress of receiving a large bill has made their health issues worse. They are concerned the monthly payments requested by the Council would leave them with no quality of life.
15. The Council have confirmed that no other properties are part of Mr and Mrs X’s development, therefore this issue has not had an impact on anyone else.
16. In response to a draft of this decision, the Council has issued an apology for the fault identified and reminded its staff to inform service users of their appeal rights.

Analysis

17. Every domestic property has a council tax band. The Valuation Office, which is part of central government, decides this, and when council tax becomes payable. Therefore, we cannot investigate that decision. If someone wants to challenge this they can appeal to the Valuation Tribunal.
18. However, on the evidence I have seen, the Council did not advise Mr and Mrs X of their right to appeal the date that Council tax became payable and there are time limits in which to appeal. This is fault. This has caused Mr and Mrs X injustice as there is uncertainty about whether they will be able to bring a late appeal.
19. The Council contacted the developer in 2019 and 2022 to establish who owned the property. This led to a delay in Mr and Mrs X receiving their Council tax bill. This is fault.
20. This fault caused Mr and Mrs X to accrue a balance of nearly six 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 2016 and has no obligation to reduce these charges.
21. However, the production of a large balance has caused Mr and Mrs X distress. The Council has agreed to spread Mr and Mrs X’s Council tax payments over a longer period, and this is a suitable remedy for its delay sending a council tax bill. The council tax is still due, and Mr and Mrs X have benefitted from the full range of council services,
22. The Council requested that Mr and Mrs X pay £357 per month to clear their debt. Mr and Mrs X say they are unable to pay this amount due to their outgoings and expenses. The Council assessed Mr and Mrs X’s finances, before deciding what it considered was affordable. Although Mr and Mrs X are unhappy with the outcome, the Council followed a proper decision-making process, and I do not find the Council at fault.
23. To remedy the injustice identified above, I asked the Council to apologise to Mr and Mrs X and remind staff to inform service users of their appeal rights. It has now provided evidence it has done this and I do not require it to take further action.

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Final decision

24. I find the Council at fault for failing to advise Mr and Mrs X of their appeal rights and for the delay in sending them their bill.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman