South Staffordshire District Council (20 001 781)

Category : Benefits and tax > Local welfare payments

Decision : Closed after initial enquiries

Decision date : 05 Nov 2020

The Ombudsman's final decision:

Summary: The Ombudsman will not investigate Mr X’s complaint about the Council refusing to award a small business grant. 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 refused his application for a small business grant.

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The Ombudsman’s role and powers

  1. 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”.
  2. 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, or it is unlikely further investigation will lead to a different outcome. (Local Government Act 1974, section 24A(6), as amended)
  3. 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

  1. 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.

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What I found

  1. 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. The Department for Business, Energy and Industrial Strategy produced guidance to help councils administer the grants.
  2. The guidance explains that 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. The guidance explains there will be one grant paid to eligible recipients per hereditament (property). The property’s ratepayer on 11 March 2020 will receive the grant.
  3. The Council has refused Mr X’s application for a small business grant. It has explained this is because it has already paid a grant for the property from which Mr X operates his business. Mr X has said he shares the property with another tenant, but their businesses are not connected. Mr X says he has a contract to share the rent with the other tenant. The Council says it sympathises with Mr X’s situation, but the Government’s guidance clearly states only one grant can be paid per property. It has suggested Mr X speak with the other tenant about possibly splitting the grant.
  4. I understand Mr X is disappointed with the Council’s decision. But the Ombudsman is not an appeal body and we cannot criticise a council’s decision if there is no fault in the way it has been reached. The Council has considered Mr X’s application and has decided he does not meet the criteria for a grant. This is a decision it was entitled to reach. Mr X has not provided me with any information which suggests the Council’s decision was wrong. Without evidence of fault in how the Council reached its decision, it is not one the Ombudsman can question. We will not therefore investigate.

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Final decision

  1. The Ombudsman will not investigate Mr X’s 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

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