Summary: The Ombudsman will not investigate this complaint about Mrs X’s business not receiving a grant related to the Covid-19 pandemic. There is not enough evidence of fault affecting the Council’s decisions.

The complaint

1. Mrs X complains the Council did not advise her to register for business rates when she set up her business and it refused to give her business one of the grants for businesses affected by the Covid-19 restrictions. Mrs X says her business has suffered financially as a result.

Back to top

The Ombudsman’s role and powers

2. This complaint involves events that occurred during the Covid-19 pandemic. The Government introduced a range of new and frequently updated rules and guidance during this time. We can consider whether the council followed the relevant legislation, guidance and our published “Principles of Good Administrative Practice during Covid”.
3. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)

Back to top

How I considered this complaint

4. I considered the information Mrs X provided, the relevant government guidance for councils and information on the Council’s website about its discretionary grants scheme. I shared my draft decision with Mrs X and considered her comments on it.

Back to top

What I found

5. In March 2020, the government created schemes for councils to pay grants to small businesses and retail, hospitality and leisure businesses. This was because the Covid-19 restrictions affected so many of those businesses. A business’ right to a grant depends on its rateable value and related points as at 11 March 2020. Government guidance states later changes to the rating list, even if such changes are backdated to 11 March 2020, do not entitle a business to a grant. A council can make an exception if, on 11 March 2020, it already had good reason to believe the list was inaccurate for a particular address or business.
6. The government also gave councils money for discretionary grants to businesses. Councils should have a policy on making discretionary grants.
7. In 2019 Mrs X set up a business in a building in her garden. Mrs X did not register for business rates, she says because she did not realise she had to. In late March 2020, when the Covid-19 restrictions prevented her business working, Mrs X contacted the Council about a grant. The Council did not give her a grant because the business was not registered for business rates.
8. Mrs X is dissatisfied that the Council’s housing, planning and licensing sections, which she contacted when setting up her business, did not tell her to register for business rates. Mrs X reiterated this point in her response to a draft of this decision. I do not find fault on this point. Those Council departments had no duty to tell Mrs X about her obligation to enquire about paying business rates.
9. On 11 March 2020, Mrs X’s business was not on the Council’s business rating list. Nor did the Council, in terms of its business rates duties, have good reason on 11 March 2020 to believe its rating list was inaccurate in respect of Mrs X’s business. Mrs X did not contact the business rates section until late March. The fact that, before March 2020, Mrs X had dealt with other Council departments about separate Council responsibilities is not relevant here.
10. So the Council’s refusal to award a small business or retail, hospitality and leisure grant was in line with government guidance. I do not find fault with that decision.
11. The Council’s discretionary grants scheme covers the areas the government guidance says it should. It also prioritises grants to two other types of locally significant business, which do not include Mrs X’s field of business. The scheme excludes businesses operating from domestic properties, except bed-and-breakfasts. As Mrs X’s business operates from a domestic property and is not the type of business the Council is prioritising for a grant, the Council did not award a discretionary grant. The Council says it will reconsider this if any of its discretionary grant budget is left after the current scheme ends.
12. The Council was entitled to prioritise discretionary grants in the way it did. Its decision was in line with its scheme. So I do not find fault with how the Council reached its decision. The Council’s willingness to revisit the matter if funds remain shows it has not fettered its discretion.
13. Mrs X states other councils have given grants to businesses in similar situations to hers. As administering these grants involves an element of judgement, it is possible different councils might make different judgements. That does not necessarily mean a Council is at fault for making a different decision. In Mrs X’s case, the Council has given reasons for its decisions, with reference to government guidance, among other factors. So I am not persuaded the Council was at fault here.

Back to top

Final decision

14. The Ombudsman will not investigate this complaint. This is because there is insufficient evidence of fault by the Council.

Back to top

Investigator's decision on behalf of the Ombudsman