Summary: The Ombudsman will not investigate Mr X’s complaint about the Council’s decision regarding business rates relief. 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 Council’s decision not to award his firm a business rates ‘holiday’ for 2020/21.

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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. (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 announced that various businesses likely to have been affected by COVID-19, would have their business rates for 2020/21 reduced to zero. This applied to any business which was a:
• shop;
• restaurant, café, bar or pub;
• cinema or live music venue;
• assembly or leisure property - for example, a sports club, a gym or a spa;
• hospitality property - for example, a hotel, a guest house or self-catering accommodation.
7. The Ministry of Housing, Communities and Local Government issued guidance to help councils administer the scheme.
8. Mr X’s firm applied to the Council for business rates relief as provided by the above scheme (often referred to as a business rates holiday). Mr X says his business operates in the hospitality and leisure industry and provides a home delivery service.
9. The Council has refused Mr X’s request. In its response to Mr X the Council referred to the part of the guidance which says “the relief should be awarded where premises are wholly or mainly being used for the purpose of retail to the general public.” It said that providing a home delivery service would not satisfy this requirement. The Council also says Mr X's property is classified as a factory by the Valuation Office – and it will therefore have been benefitting from lower business rates.
10. I understand Mr X is disappointed with the Council’s decision. But the role of the Ombudsman is to look for administrative fault. We are not an appeal body and cannot criticise decisions taken without fault.
11. The Council has considered Mr X’s request for a busines rates holiday and has applied the Government’s guidance. It has decided Mr X’s business does not meet the criteria required. This is a decision it is entitled to reach. The Council has explained its decision to Mr X and has supported this by reference to the Government’s guidance. There is not enough evidence of fault by the Council to warrant an investigation by the Ombudsman.

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Final decision

12. 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