Summary: We will not investigate Mr X’s complaint about the Council refusing to award a business grant available due to 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, complained the Council has refused his application for a small business grant.

Back to top

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)

Back to top

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.

Back to top

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. In April 2020, Mr X applied to the Council for a small business grant using the address of Property Y. The Council rejected Mr X’s application. In its responses to Mr X’s complaint the Council said:
• Property Y was a listed building which was unoccupied and therefore entitled to an exemption, rather than SBRR.
• Mr X had said Property Y became occupied in January 2020. But the Council had not received any correspondence about the change of occupation before Mr X applied for the grant.
• The property did not have SBRR applied on 11 March 2020 and was not therefore eligible for the grant of £10,000.
• Mr X had provided what he considered to be evidence of occupation, including a planning application and the installation of security cameras, internet, and a phone line. But this was not considered proof of occupation. In normal circumstances the Council would actually accept the evidence as proof a property was not occupied. It had sought advice on this point.
• Mr X had provided case law in support of his application which the Council had considered, but it did not affect its decision.
10. 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 without evidence of fault in the decision making process.
11. 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 with reference to the Government’s guidance. Mr X accepts his property was not registered for SBRR on 11 March 2020. The Council has considered the evidence Mr X has provided and has decided he was not in occupation of Property Y. There is no evidence the Council had reason to believe the rating list was wrong on 11 March 2020. I have not seen any fault in how the Council reached its decision not to award a grant. It is not therefore a decision we can question.

Back to top

Final decision

12. We will not investigate Mr X’s complaint. This is because there is not enough evidence of fault by the Council.

Back to top

Investigator's decision on behalf of the Ombudsman