Summary: We will not investigate this complaint about the Council decision to refuse small business grants. We have not seen evidence of fault in the Council’s decision-making process.

The complaint

1. Mr X says the Council wrongly refused grants for 2 of his businesses under a scheme established by the Government in April 2020 to support businesses impacted by the COVID-19 pandemic.
2. Mr X says his businesses missed a valuable source of financial help when needed.

Back to top

The Ombudsman’s role and powers

3. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. 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)
4. This complaint involves events that occurred during the COVID-19 pandemic. The Government introduced a range of new and often 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”.

Back to top

How I considered this complaint

5. I considered information provided by the Mr X and the Council.
6. I considered the Ombudsman’s Assessment Code.

Back to top

My assessment

7. In March 2020, in response to the COVID-19 pandemic, the government created schemes for councils to pay grants to small businesses. These included the Small Business Grant Fund (SBGF).
8. To receive funding from the SBGF a business had to be receiving small business rate relief (SBRR) (or rural rates relief) on 11 March 2020. Eligible businesses would receive a grant of £10,000. SBRR is only applied where a business occupies premises or land with a rateable value of less than £15000. It is not applied if the property or land is empty and therefore not in occupation by the ratepayer.
9. Government guidance said the Council should pay any funding from the SBGF to “the person who according to [it’s] records was the ratepayer in respect of the hereditament on the 11 March 2020”. But that where it had “reason to believe” it held incorrect information about the ratepayer it could withhold any payment and “take reasonable steps” to identify the correct ratepayer.
10. The Valuation Office Agency (VOA) provides valuations and property advice to support taxation and benefits to the government and local authorities in England, Scotland, and Wales. It compiles and maintains lists detailing the rateable value of commercial properties for business rates.
11. Mr X applied to the Council for small business grants to 2 of his businesses.
12. The Council refused the applications because neither business was receiving SBRR or rural rates relief on 11 March 2020. Therefore, the businesses did not qualify for the grants.

Back to top

Final decision

13. We will not investigate Mr X’s complaint because we have not seen evidence of fault in the Council’s decision to refuse his applications for grants. Neither business qualified for the grants.

Investigator’s decision on behalf of the Ombudsman

Back to top

Investigator's decision on behalf of the Ombudsman