Summary: We will not investigate this complaint about the Council’s decision not to award Mr X a refund which reflects the reduction in the purchasing power of money from 1993 onwards. This is because there is no evidence of fault in the Council’s actions.

The complaint

1. Mr X says the Council should pay him a refund that reflects the reduction in the purchasing power of money since 1993 alongside a council tax refund he received when his property was placed in a lower council tax band.
2. He said the Council’s actions are unfair and have caused him financial loss.

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The Ombudsman’s role and powers

3. 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 or may decide not to continue with an investigation if we decide:

• there is not enough evidence of fault to justify investigating.
  (Local Government Act 1974, section 24A(6), as amended, section 34(B))

4. We investigate complaints about councils and certain other bodies. We cannot investigate the actions of bodies such as the Valuation Office Agency (VOA). (Local Government Act 1974, sections 25 and 34A, as amended)

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How I considered this complaint

5. I considered information provided by Mr X and the Council.
6. I considered the Ombudsman’s Assessment Code.

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My assessment

7. The Valuation Office Agency (VOA) decides which council tax band a property should be in, and acts independently of the Council. If someone thinks their home is in the wrong band they can ask for a re-evaluation. The VOA can then decide to increase or decrease the banding.
8. If the VOA changes the band, it will inform the Council and the Council will issue a revised bill. If the banding is decreased, the Council will provide a refund. Government guidance recommends councils pay refunds going back to 1993, if applicable. There is no guidance or legislation which requires councils to pay interest or to consider any reduction in the purchasing power of money when calculating council tax refunds.
9. Mr X complained to the Council after receiving a council tax refund when the VOA reduced his property banding and backdated the change to 1993. He said the Council should take into account the reduction in the purchasing power of money since 1993 and include this alongside his refund.
10. The Council explained that it had calculated the refund in line with the relevant government advice and legislation however Mr X remains unhappy.
11. The current law and government guidance does not require the Council to include either interest or to consider the purchasing power of money when providing council tax refunds. I am satisfied that the Council has adequately explained this to Mr X and handled this matter in the manner I would expect.

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Final decision

12. We will not investigate Mr X’s complaint because there is no evidence of fault in the Council’s actions.

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Investigator's decision on behalf of the Ombudsman