Summary: We will not investigate Mr and Mrs X’s complaint about the Council’s decision to refuse their application for a grant for small businesses affected by the COVID-19 pandemic. This is because there is no evidence of fault affecting the decision.

The complaint

1. The complainants, Mr and Mrs X, complain the Council wrongly refused their application for a COVID-19 small business grant.

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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’, 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 Mrs X and the Council.
5. I considered the Ombudsman’s Assessment Code.

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Background

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 and Mrs X applied for a grant for their business but the Council refused their application. This was because their premises was not separately listed on the Valuation Office Agency (VOA) rating list on 11 March 2020. Mr and Mrs X argue the rating list was incorrect and government guidance gave the Council discretion to award them a grant.
9. The VOA has since carried out an inspection and listed Mr and Mrs X’s premises separately, backdating their liability for business rates to December 2019.

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My assessment

10. I have seen no evidence of fault by the Council in its handling of Mr and Mrs X’s application. While government guidance gave councils some discretion to prevent manifest errors this applied “In cases where it was factually clear to the Local Authority on the 11 March 2020 that the rating list was inaccurate on that date”. The guidance also states “Any changes to the rating list… after the 11 March 2020 including changes which have been backdated to this date should be ignored for the purposes of eligibility.”
11. There was no suggestion the Council was aware of any error on 11 March 2020 and the VOA’s decision to backdate the listing for Mr and Mrs X’s premises cannot entitle them to a grant as set out above. This shows the Council did not have discretion to award Mr and Mrs X a grant so we cannot say it was wrong to refuse their application.

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Final decision

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

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman