Summary: The Ombudsman will not investigate Mr X’s complaint about the Council refusing to award a small business grant. This is because there is not enough evidence of fault by the Council.

The complaint

1. The complainant, whom I shall call Mr X, complains the Council has refused his application for a small business grant.

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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 “Good Administrative Practice during the response to COVID-19”.
3. 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’. We provide a free service but must use public money carefully. We may decide not to start or continue with an investigation if we believe it is unlikely we would find fault, or it is unlikely further investigation will lead to a different outcome. (Local Government Act 1974, section 24A(6), as amended)
4. 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)

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How I considered this complaint

5. I considered Mr X’s complaint to the Ombudsman and the information he provided. I also gave Mr X the opportunity to comment on a draft statement before reaching a final decision on his complaint.

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What I found

6. In March 2020, the Government created schemes for councils to pay grants to small businesses. This was because the COVID-19 restrictions affected so many of them.
7. Businesses in receipt of Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) as of 11 March 2020 were eligible for a payment of £10,000.
8. The Department for Business, Energy and Industrial Strategy produced guidance to help councils administer the grants. The guidance explains that 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.
9. Mr X applied to the Council for a small business grant and it refused his application. It has explained this is because Mr X’s business was not on the rating list on 11 March 2020. It could not therefore be eligible for SBRR or RRR and the grant of £10,000.
10. Mr X is unhappy because the Council’s website said “You will need to register before you can apply for the grant.” In its responses to Mr X’s complaints, the Council said the information on its website could apply to a situation where a business was on the rating list, but the owner had changed. The Council amended the wording on its website and backdated Mr X’s SBRR to 01 January 2020. But, because Mr X’s business was not on the rating list on 11 March 2020, the Council confirmed Mr X does not qualify for the grant.
11. I understand Mr X is disappointed with the Council’s decision. But the Ombudsman is not an appeal body and we cannot criticise a council’s decision if there is no fault in the way it has been reached. The Council has considered Mr X’s application and has decided he does not meet the criteria for a grant. This is a decision it was entitled to reach.
12. Regardless of the information contained on the Council’s website, it is the fact Mr X’s business was not eligible for SBRR or RRR on 11 March 2020 which means he does not qualify for the grant. The backdating of SBRR to 01 January 2020 does not change this, because the Council did not already have reason to believe the rating list was wrong on 11 March 2020. I have not seen any fault in how the Council reached its decision not to award a grant and so it is not one the Ombudsman can question. Mr X’s concerns about the wording of the information on the Council’s website do not warrant investigation in their own right.

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Final decision

13. The Ombudsman will not investigate Mr X’s complaint. This is because there is not enough evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman