Summary: We will not investigate this complaint about the Council’s decision to refuse an application for a small business grant. We have seen no evidence of fault in the Council’s decision.

The complaint

1. The complainant, I shall call Ms D, says the Council wrongly refused her a small business grant.
2. She says because if this her business missed a source of financial help.

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The Ombudsman’s role and powers

3. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse effect on the person making the complaint, which we call ‘injustice’. We provide a free service but must use public money carefully. We may decide not to start an investigation if the tests set out in our Assessment Code are not met. (Local Government Act 1974, section 24A (6), as amended)

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How I considered this complaint

4. I considered information provided by Ms D and the Council.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. 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).
7. 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.
8. 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.
9. Ms D applied for a Small Business Grant (SBG). The Council says it has no records of her registered as ratepayer at the business address. It asked for a copy of the lease or tenancy agreement showing she was the rate payer on 11 March 2020.
10. Ms D gave the Council much information but could not produce a copy of the tenancy agreement or lease. The Council decided that none of the information Ms D provided was sufficient evidence that she was the ratepayer at the business address.
11. The issue in this case is whether Ms D was the business ratepayer on the 11 March 2020). The Council has come to the view she was not and his meant the business had no entitlement to a grant from the SBGF.
12. My role is not to question a decision taken by the Council unless it has reached a decision with fault. In this case I am satisfied there is no fault in the Council’s decision. It sought further information from Ms D. However, having considered the information she provided it is not satisfied that Ms D’s business qualified for a grant from the SBRF.

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Final decision

13. We will not investigate Ms D’s complaint. I have seen no evidence of fault in the way the Council considered her application for a small business grant.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman