Summary: The Ombudsman will not investigate Mr 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 Mr X, complains the Council has refused his 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 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. 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. Mr X applied to the Council for a small business grant. The Council rejected Mr X’s application because his 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.
10. Mr X appealed the Council’s decision. He explained he did not realise his business was not on the rating list. He had been in contact with the Valuation Office and it had added his business to the rating list from August 2020. Mr X asked the Council to use its discretion to award his busines a grant.
11. The Council refused Mr X’s request. It 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.
12. 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. 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. It has explained its decision to Mr X with reference to the relevant guidance. Mr X accepts he did not know his business was not on the rating list until he considered applying for the small business grant. I have not seen any fault in how the Council reached its decision not to award a grant. It is not therefore a decision 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.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman