Summary: We will not investigate Miss X’s complaint about the Council’s recovery of council tax. This is because it is reasonable for her to use her right of appeal to the Valuation Tribunal and it is unlikely further investigation by us would lead to a different outcome.

The complaint

1. Miss X complains the Council failed to properly manage her council tax account by wrongly applying a full student exemption. Miss X says the Council later corrected this and issued her with unexpected bills. She says this caused her significant financial and emotional distress and wants the Council to reduce her council tax liability and associated payment plan, apologise for its mistake and provide financial compensation for the inconvenience caused.

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The Ombudsman’s role and powers

2. 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)
3. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
4. We investigate 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 continue an investigation if we decide further investigation would not lead to a different outcome, (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

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

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My assessment

7. Miss X complains the Council wrongly applied a full student exemption to her council tax account when she was only a part-time student. Miss X says when the Council corrected this, it issued her with unexpected bills which she is finding difficult to pay. Miss X says the Council should reduce her council liability because of its error and not pursue her for the full amount it has backdated.
8. The Council accepts in correspondence with Miss X it made an error and applied the incorrect exemption to her council tax account. The Council states as soon as it became aware of its error, it sent Miss X amended notices requesting the correct amount. The Council has also agreed a repayment arrangement with Miss X which allows her to pay off the council tax owed over an extended period.
9. The Council explains council tax liability is statutory under the Local Government Finance Act 1992. Where a Council identifies that its records or billing were incorrect, the Council Tax (Administration and Enforcement) Regulations 1992 require liability to be recalculated and notified through amended notices. The Council is therefore entitled to correct the account so that the amount demanded reflects the taxpayer's true statutory liability.
10. If Miss X is not satisfied with the Council’s decision on her council tax liability, Miss X has a right to appeal to the Valuation Tribunal about this issue. The tribunal is an independent expert body. The Council must do what the tribunal tells it to. We cannot decide issues relating to council tax liability. It is reasonable to expect Miss X to appeal to the tribunal in this case and the restriction in paragraph 2 applies to this complaint.
11. Furthermore, the Council has apologised for its error and has stated it will make a service improvement in the way in administers student exemption award letters. It is unlikely further investigation by us would lead to a different outcome.

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Final decision

12. We will not investigate Miss X’s complaint because it is reasonable for her to use her right of appeal to the Valuation Tribunal and it is unlikely further investigation by us would lead to a different outcome.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman