Summary: The Ombudsman will not pursue this complaint about the Council refusing a small business grant and small business rates relief. The evidence I have seen suggests the Council was not at fault.

The complaint

1. Ms X complains the Council did not give her business a small business grant and small business rates relief. This has affected her business’ financial position.

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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 the information Ms X provided, including copies of her correspondence with the Council. I gave Ms X the opportunity to comment on my draft decision.

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What I found

Grants and business rates relief for small businesses

6. Some business premises are eligible for small business rates relief if the premises are occupied in rating terms and if certain other conditions are met. It is for the Council to decide if a property is occupied for business rates purposes. The fact that someone owns or rents a property or is carrying out some activity does not necessarily mean the property is occupied for business rates purposes.
7. 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 those businesses.
8. A business’ right to such a grant depends on its rateable value on the business rating list and its eligibility for small business rates relief 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 rating list was inaccurate for a particular address or business. This is only intended to prevent ‘manifest errors,’ such as the rating list wrongly identifying the property or rateable value.
9. A property that the Council treated as empty (for business rates purposes) on 11 March 2020 is not eligible for a grant.

Ms X’s dealings with the Council

10. Ms X runs a property development business. She bought an empty property in 2019, intending to rent it out. She reports an agent told her she could rent it out if she did some electrical work and other jobs. Ms X states she then decided to use the property for her business’ office and storage rather than renting it out.
11. Ms X has shown me a copy of a letter dated 1 February 2020, addressed to the Council, in which she advised that her business was now occupying the property. She states she sent the Council that letter. The Council says it did not receive that letter and that, anyway, the letter on its own did not contain enough evidence for it to award small business rates relief.
12. Ms X contacted the Council after 11 March 2020 enquiring about getting a small business grant. The Council refused her application as on 11 March 2020 its records had shown the property was still empty. The Council asked for more evidence that Ms X’s business was occupying the property, such as utility bills showing increased usage, photos showing occupation, or anything else showing the business had moved in or showing the business was trading at that address.
13. Ms X sent the Council invoices showing some electrical work, changes to radiators and work to the kitchen. She states she would not have done that work had she been going to rent the property out (though I note an agent apparently advised some works would be needed before renting the property out). The Council says the evidence does not show Ms X’s business was actually occupying the property at 11 March 2020. So the Council was not persuaded the property qualified for small business rates relief or a grant at that date.

Refusal of small business grant

14. The Council states it did not receive Ms X’s letter in February. I shall not be able to establish what happened to that letter. So there is not enough evidence of fault by the Council on that point, nor is there a realistic prospect of reaching a clearer view by investigating. As Ms X did not contact the Council again before 11 March, this means that on 11 March the Council did not have reason to believe the rating list was inaccurate about Ms X’s property.
15. As paragraph 8 explained, any later amendments regarding the property (and in the event the Council did not make any later changes) would not have changed the situation regarding grant eligibility. Therefore I do not consider the Council was at fault for refusing the grant.

Refusal of small business rates relief

16. It is for the Council to decide whether the property was rateably occupied. The evidence suggests the Council considered Ms X’s statements and the documents she provided. The Council gave reasons for concluding the evidence did not show Ms X’s business was rateably occupying the property. That was a decision the Council was entitled to make and the evidence indicates the Council reached the decision properly. So, while Ms X is entitled to disagree with the Council, I cannot criticise the decision, as paragraph 4 explained.

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Final decision

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

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Investigator's decision on behalf of the Ombudsman