Summary: The Ombudsman will not investigate Mr X’s complaint about a lack of support for his business during the COVID-19 pandemic. 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 failed to pay his business any grants during COVID-19 or to award Small Business Rates Relief.

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. (Local Government Act 1974, section 24A(6), as amended)

Back to top

How I considered this complaint

4. 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

5. 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.
6. 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.
7. The Government also introduced:
• The Local Restrictions Support Grant (Open). This was to help businesses linked to the hospitality, hotel, bed and breakfast and leisure sectors. Eligible businesses were those that remained open - but were severely affected by the tiered local restrictions which were in place from 14 October and 02 December 2020 onwards.
• The Local Restrictions Support Grant (Closed) scheme. This was for businesses mandated to close by the government from November 2020. This included non-essential retail, leisure, personal care, sports facilities, and hospitality businesses.
8. Mr X says he purchased his business, a restaurant, in November 2019. Work started on the restaurant in January 2020. Mr X says work was sporadic due to COVID-19 and eventually stopped. Mr X has applied to the Council for support, but it has refused his applications. It has said that:
• To qualify for SBRR the business needs to be in occupation and trading. The property is empty and not trading.
• To qualify for the initial payment of £10,000 the business needed to be in receipt of SBRR or RRR on 11 March 2020. Mr X’s business was not.
• To qualify for the other grants an eligible business needed to be trading. Mr X’s business, which had not yet opened, did not therefore qualify.
9. I understand Mr X is disappointed by the Council’s decisions. But we are not an appeal body and cannot question decisions taken without fault. The Council has considered Mr X’s requests for support and has decided he does not qualify. It has explained its decision to Mr X with reference to guidance from the Government. Based on the evidence available there is not enough evidence of fault by the Council in how it has reached its decisions and so they are not ones we can question. We will not therefore investigate Mr X’s complaint.

Back to top

Final decision

10. 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