Summary: We will not investigate Mr X’s complaint about the amount of business rates payable for his business premises. This is because the Council is not responsible for setting the rateable value. The Council has billed Mr X correctly based on the rateable value set by the Valuation Office Agency and this is not fault.

The complaint

1. The complainant, Mr X, complains about the amount of business rates he has to pay for his business premises. He says the premises have not been assessed since 2017 and as a result the rateable value is out of date. He is also unhappy the Council has not visited the premises to consider whether his complaint is valid. He wants the Council to reduce the amount of his business rates liability to zero.

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The Ombudsman’s role and powers

2. 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

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

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Background

4. Business rates are a tax on the occupation of non-domestic property. The level of business rates payable for each property is calculated by taking a set figure (the rate poundage) decided by the Secretary of Stage for the Environment and approved by Parliament and multiplying this by the property’s rateable value.

The rateable value is decided by the District Valuer on behalf of the Valuation Office Agency (VOA), which keeps the business rating list. The VOA arranges revaluations, which are normally carried out every five years. We have no power to investigate complaints about the VOA’s decisions as it is not a body within our jurisdiction. The VOA’s decisions carry a right of appeal to the Valuation Tribunal.

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My assessment

5. The Council is not responsible for setting the rateable value for Mr X’s business premises. It has billed Mr X for business rates in accordance with the values set by Parliament and the VOA and this is not fault. It is not the Council’s role to visit the premises and decide whether the rateable value is correct.
6. If Mr X wishes to dispute the rateable value he should contact the VOA via his business rates valuation account. If the VOA refuses to change the value he may appeal to the Valuation Tribunal.
7. The Council has informed Mr X about the process to apply for hardship and discretionary relief and if Mr X is unable to pay the rates owed he may wish to apply to these schemes for help.

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Final decision

8. 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