Summary: The Ombudsman will investigate Mr X’s complaint about the amount the Council paid his business under its discretionary grants scheme. 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 about the amount the Council has paid his business under its discretionary grants scheme. Mr X says his business should receive a grant of £10,000, rather than the £5,000 the Council has paid.

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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 we could add to any previous investigation by the Council, 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, and businesses in the retail, hospitality and leisure sectors. This was because the COVID-19 restrictions affected so many of them. Businesses receiving Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) as of 11 March 2020, were eligible for a payment of £10,000 under the Small Business Grant Fund.
7. In May 2020, the Government announced extra funding aimed at small and micro business not eligible for the Small Business Grant Fund. Councils were responsible for delivering grants to eligible businesses. Guidance produced by the Department for Business, Energy, and Industrial Strategy, said that councils could pay grants of £25,000, £10,000 or any amount under £10,000. The guidance said that in many cases, payments under £10,000 would be appropriate. Each council should have its own discretionary grants policy.
8. The Council’s discretionary grants scheme states payments of up to £5,000 will be available for micro businesses. To be a micro business a company must satisfy two of the following criteria:
• Turnover of not more than £632,000.
• A balance sheet total of not more than £316,000.
• An employee headcount of not more than 10.
9. Mr X operates a bed and breakfast business which has been affected by COVID-19. Mr X applied to the Council for help. Mr X’s business did not qualify for the Small Business Grant Fund because it was not eligible for SBRR or RRR. The Council therefore considered his application under its discretionary grants scheme. It decided Mr X’s business met the criteria for a micro business and awarded the maximum £5,000 available under its published scheme.
10. Mr X appealed the Council’s decision and questioned the award of £5,000. The Council considered what Mr X said and explained why his business did not qualify for a grant under the Small Business Grant Fund. It explained it had awarded the maximum amount under its published policy.
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.
12. I have not seen any evidence of fault in how the Council decided Mr X’s business does not qualify for support under the Small Business Grant Fund. The Council can decide certain terms of its discretionary grant scheme. A policy which awards a maximum grant of £5,000 to micro businesses is one the Council is entitled to operate. The evidence I have seen shows the Council has properly applied the terms of its discretionary scheme to Mr X’s application. Without evidence of fault in how the Council has reached its decision it is not one the Ombudsman can question.

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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