Summary: We will not investigate Mr X’s complaint about the Council’s decision to refuse his application for business grants available due to the impact of COVID-19. 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 organisation’s applications for grants available due to the impact of COVID-19.

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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 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. 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. Businesses in the retail, hospitality and leisure sector, with a rateable value up to £15,000 on 11 March 2020, were eligible for a grant of £10,000. Businesses with a rateable value between £15,000 and £51,000 were eligible for a grant of £25,000. To qualify, the business needed to have been eligible for a discount under the business rates Expanded Retail Discount Scheme on 11 March 2020.
9. Businesses in liquidation or occupying properties already exempt from rating or with a zero rateable value were not eligible for a grant.
10. Mr X represents an organisation which he says is charity, church and limited company. The Council has refused Mr X’s application and appeal for a grant under the above schemes. It says the address Mr X’s organisation occupies was removed from the rating list from 01 April 2017 as it was certified as a place of religious worship. This means the property cannot be in receipt of SBRR, RRR, or qualify for the support available to businesses in the retail, hospitality and leisure sector. The Council did, however, award Mr X’s organisation support under the discretionary grant scheme the Government announced in May 2020. This provided support for businesses not entitled to help under the schemes set out in paragraphs 7 and 8.
11. I understand Mr X is disappointed with the Council’s decision. But we are not an appeal body and 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. Based on the evidence I have seen, the Council’s decision is in line with the Government’s guidance. Mr X’s business was not registered for business rates because it was already exempt from business rates as a place of worship. This means it was not eligible for the grants Mr X applied for. The Council has explained its decision to Mr X. Without evidence of fault in the Council’s decision making, there are no grounds for us to become involved.

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Final decision

12. We 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