Summary: The Ombudsman cannot investigate Mrs X’s complaint about the rateable value of a business premises she briefly occupied as this is set by the District Valuer and appealable to the Valuation Tribunal. We will not investigate Mrs X’s complaint about her liability for business rates as the courts are better placed to determine the issue.

The complaint

1. The complainant, Mrs X, complains the Council has wrongly charged her for business rates on a premises she occupied informally for only two months.

Back to top

The Ombudsman’s role and powers

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 there is another body better placed to consider this complaint.

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

3. We cannot investigate a complaint where the body complained about is not responsible for the issue being raised. (Local Government Act 1974, section 24A(1), as amended)

Back to top

How I considered this complaint

4. I reviewed Mrs X’s complaint, shared my draft decision with her and invited her comments.

Back to top

What I found

5. Mrs X occupied part of a commercial building for just over two months in late 2018. She says she tried to obtain a rateable value for the part she considered leasing but the Council did not provide this until after she left. At that point it sent her an invoice for more than £1,000 for business rates.
6. Mrs X disputes the rateable value of the premises and her liability for business rates. She does not qualify for small business rate relief due as the rateable value is more than £15,000 but believes the Council should apply it anyway or otherwise waive her liability to pay its invoice.
7. The Ombudsman will not investigate this complaint. The Council does not set the rateable value or the level of business rates; it only collects the business rates owed. The District Valuer sets the rateable value and the level of business rates is determined using this and the rate poundage, which is set by central government. If Mrs X is unhappy with the rateable value set by the District Valuer she may appeal to the Valuation Tribunal. Complaints about this issue fall outside our jurisdiction as they do not concern an administrative function of the Council and the District Valuer is not a body within our jurisdiction.
8. The Council has written to Mrs X to say that if she does not pay the amount owed, it will issue a summons for non-payment. If Mrs X disputes her liability for business rates she may decide not to pay and argue the point at court. The magistrates’ court is the appropriate body to determine liability and it is not for us to muddy the waters prior to any formal hearing on the issue.

Back to top

Final decision

9. The Ombudsman will not investigate this complaint. This is because the Council is not responsible for setting the rateable value and the courts are better placed to determine Mrs X’s liability for business rates.

Back to top

Investigator's decision on behalf of the Ombudsman