Summary: The Ombudsman will not investigate Miss 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 Miss X, complains the Council has refused her 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 Miss X’s complaint to the Ombudsman and the information she provided. I also gave Miss X the opportunity to comment on a draft statement before reaching a final decision on her 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. Miss X applied to the Council for a small business grant. Miss X says her business occupied its premises from November 2019. She has told the Council the Valuation Office is in the process of splitting the property her business operates from into separate units. When this is complete Miss X’s business will be added to the rating list.
10. The Council has refused Miss X’s application and appeal for a grant. It has explained this is because Miss 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. It has referred to the guidance which says backdated changes to the rating list do not entitle a business to a grant – unless the Council had reason to believe the list was inaccurate on 11 March 2020. The Council says this was not the case.
11. I understand Miss 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 Miss X’s application and has decided she does not meet the criteria for a grant. This is a decision it was entitled to reach. It has explained its decision to Miss X with reference to the relevant guidance. I have not seen any fault in how the Council reached its decision and so it is not one the Ombudsman can question.

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Final decision

12. The Ombudsman will not investigate Miss 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