Summary: We will not investigate Mr X’s complaint that the Council wrongly advised him that he did not have to pay business rates for his premises. This is because the Council’s advice did not cause Mr X significant injustice.

The complaint

1. The complainant, Mr X, complains the Council wrongly advised him on several occasions that he did not have to pay business rates for his premises. The Council now accepts that advice was wrong and says Mr X must pay £579.25. Mr X wants the Council to cancel the demand and waive the outstanding business rates.

Back to top

The Ombudsman’s role and powers

2. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start or may decide not to continue with an investigation if we decide:

• there is not enough evidence of fault to justify investigating, or
• any fault has not caused injustice to the person who complained, or
• any injustice is not significant enough to justify our involvement.

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

Back to top

How I considered this complaint

3. I considered information provided by Mr X and the Council.
4. I considered the Ombudsman’s Assessment Code.

Back to top

My assessment

5. Business rates are a tax on the occupation of non-domestic property. The level of business rates is set centrally and rates are billed and collected by the relevant local authority. The local authority keeps only part of the money it receives for business rates and passes the rest to central government.
6. The requirement to pay business rates is set out in law and we would not therefore say the Council must waive the outstanding rates owed by Mr X. The Council accepts it wrongly informed Mr X that he would not have to pay but any injustice caused by its wrong advice is not significant. Mr X was always liable to pay the £579.25 and the Council’s error has given him more time to pay than he would otherwise have had. It has not billed Mr X for anymore than is owed and has offered him the opportunity to pay the debt by instalments.
7. The Council confirms it intends to issue a final reminder for the outstanding business rates and if Mr X is unable to pay the amount owed in one go he should contact the Council to make a payment arrangement.

Back to top

Final decision

8. We will not investigate this complaint. This is because the Council’s advice, which it accepts was wrong, did not cause Mr X significant injustice.

Back to top

Investigator's decision on behalf of the Ombudsman