Summary: We will not investigate Mr X’s complaint about the Council’s handling of his COVID-19 retail, hospitality and leisure grant application. This is because there is not enough evidence of fault by the Council.

The complaint

1. The complainant, Mr X, complains the Council failed to increase the amount of his COVID-19 retail, hospitality and leisure grant following a revaluation by the Valuation Office Agency (VOA) of his business premises.

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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 Mr X and the Ombudsman’s Assessment Code.

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Background

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. 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.
7. Mr X leases business premises which, as of 11 March 2020, had a rateable value of £14,500. But the VOA carried out a reassessment in 2020 which resulted in an increase in the rateable value to £23,250. It altered the rating list in August 2020 and backdated the change to 2017.
8. Mr X applied for a COVID-19 retail, hospitality and leisure grant in April 2020. The Council awarded the grant based on the rateable value at the time; Mr X therefore received £10,000. But Mr X says that based on the new rateable value he should have received £25,000. He has asked the Council to award the higher amount but it has refused.

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My assessment

9. Government guidance stated councils were not required to adjust the amount of a grant based on changes to the rating list after 11 March 2020. However the guidance allowed Councils to award a higher amount “where it was factually clear to the Local Authority on the 11 March 20202 that the rating list was inaccurate on that date…”
10. Mr X believes it was factually clear to the Council that the entry relating to his business premises was wrong and that the Council should therefore have awarded him the higher grant. But it is clear this is not the case. The Council only became aware of an issue following Mr X’s application in April 2020 and as a result of this it referred the matter to the VOA to reassess the premises. The guidance quoted above does not therefore apply. The Council assessed Mr X’s application based on the information available to it at the time and I have seen no evidence of fault affecting its decision.

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Final decision

11. We will not investigate this complaint. This is because there is not enough evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman