Summary: We will not investigate this complaint that the Council should waive some council tax because of the principle of estoppel. This is because the complainant can raise a defence in court or appeal to the Valuation Tribunal if he thinks he remained entitled to the single person discount.

The complaint

1. The complainant, whom I refer to as Mr X, says the principle of estoppel prevents the Council from increasing his council tax.

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The Ombudsman’s role and powers

2. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide there is another body better placed to consider this complaint. (Local Government Act 1974, section 24A(6))
3. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction. This includes appeals about discounts.
4. The magistrates’ court decides if council tax is owed.

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How I considered this complaint

5. I considered information provided by Mr X and the Council. This includes the correspondence about the additional council tax. I also considered our Assessment Code and invited Mr X to comment on a draft of this decision.

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My assessment

6. People who live alone are entitled to a 25% council tax discount. The discount only applies if the person is living in the property.
7. The Council can apply to the magistrates for a liability order if someone does not pay the council tax. If the person does not think the money is owed they can raise a defence in court against the application for a liability order.
8. Mr X was receiving the 25% discount. In January 2022 he told the Council he had moved out of the property but would remain the owner until it was sold. Mr X continued to pay the council tax, as billed, until the property was sold and the Council closed the account from 16 February 2023.
9. In March the Council issued a bill for £499. This was for the period from when Mr X had moved out of the property until the Council removed the discount in 2023. The Council asked Mr X to pay the sum in three instalments. The Council says Mr X has not made any payments.
10. Mr X complained and said the principle of estoppel means the Council cannot recover the extra council tax from him. In response the Council apologised for not removing the discount in January 2022; it said this was due to human error. It referred to some caselaw to explain why estoppel does not apply. It confirmed Mr X was not entitled to the discount once he had moved out.
11. Mr X says he will not pay due to estoppel and says the case law does not explain why the Council is not bound by estoppel.
12. It is not our role to determine if estoppel applies or to explain how estoppel relates to council tax. If Mr X thinks he does not owe the council tax due to estoppel he can wait for the Council to serve a summons and then raise a defence in court. The magistrates will decide if he owes the money.
13. Alternatively, if Mr X thinks he remained entitled to the discount he can appeal to the Valuation Tribunal.
14. There was a failure by the Council to remove the discount when Mr X reported the change in his circumstances in 2022. If the Council had responded promptly it would have removed the discount in 2022 and Mr X’s council tax would have increased by 25%. Due to the error his council tax was not increased until 2023. This, however, does not need an investigation because Mr X has a chance to pay the extra council tax now, before incurring court costs.
15. Mr X says the wording on the Council’s website is unclear about entitlement to the discount. But, Mr X was not misled by the website. Instead, the Council did not act on the information Mr X correctly provided when he moved. And, as I have said, Mr X can appeal to the tribunal if he thinks he remained entitled to the discount.

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Final decision

16. We will not investigate this complaint because Mr X can raise a defence in court or appeal to the Valuation Tribunal.

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Investigator's decision on behalf of the Ombudsman