Summary: We will not investigate Mr X complaint about the Council’s decision to refuse his application for a grant for small businesses affected by COVID-19. This is because there is no evidence of fault in the way the Council made its decision.

The complaint

1. The complainant, Mr X, complains about the Council’s decision to refuse his application for a £10,000 Government grant for small businesses affected by the COVID-19 pandemic.

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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. (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 reviewed Mr X’s complaint and the Council’s response. I shared my draft decision with Mr X and invited his comments.

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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. A business’ right to a grant depends on its rateable value on the business rating list and its eligibility for certain business rate reliefs on 11 March 2020.
8. Mr X purchased a property, which he rents as a holiday-let, in 2018. The property was registered for council tax but in May 2020, during the first national lockdown, Mr X contacted the Council to register for business rates instead. The Valuation Office Agency (VOA) added the property to the rating list later in 2020 and backdated the entry to Mr X’s purchase in 2018 but the Council refused his application for a small business grant. This was because the premises was not on the rating list on 11 March 2020.
9. Mr X disagrees with the Council’s decision. He says the VOA backdated the rating list entry to 2018 and he should therefore be eligible for the grant.

Assessment

10. The Council says it relied on guidance issued by the Government for the small business grant fund scheme when refusing Mr X’s application. This clearly stated:

“38. Any changes to the rating list (rateable value or to the hereditament) after the 11 March 2020 including changes which have been backdated to this date should be ignored for the purposes of eligibility.

39. Local Authorities are not required to adjust, pay or recover grants where the rating list is subsequently amended retrospectively to the 11 March 2020.”

11. Exceptions to the above include:

“40. In cases where it was factually clear to the Local Authority on 11 March 2020 that the rating list was inaccurate on that date, Local Authorities may withhold the grant and/or award the grant based on their view of who would have been entitled to the grant had the list been accurate.

41. This is entirely at the discretion of the Local Authority and only intended to prevent manifest errors.”

12. Mr X’s first contact with the Council about this matter was after 11 March 2020 and it was not therefore factually clear to it that the rating list was inaccurate on this date. The Council’s decision is therefore in line with the guidance and I have seen no evidence of fault in the way it was reached. Although the VOA has now backdated Mr X liability for business rates this does not entitle him to a grant, as set out at point 38 of the guidance quoted above.

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Final decision

13. We will not investigate this complaint. This is because there is no evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman