Summary: We will not investigate this complaint about Business rates as the matter has been remedied and can be pursued to the Valuation Office Agency (a body out of jurisdiction).

The complaint

1. Mr X complains about the way the Council dealt with his business rates account.

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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 provide a free service but must use public money carefully. We may decide not to start or continue with an investigation if we are satisfied with the actions an organisation has taken or proposes to take. (Local Government Act 1974, section 24A(7), as amended)
3. The law says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)©, as amended)

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How I considered this complaint

4. I considered information provided by the complainant and the Council.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. Mr X leased a property in November 2022 which comprised two addresses, A and B. A was subject to full Business rates relief which meant he did not have to pay any rates on this property. However, B did not have such relief, but attracted an empty property tax relief of approximately 75% for the first three months. This meant that business rates were still payable on part of the property.
7. Mr X advised the Council that he was no longer using Property B from July 2023 and so a bill was issued for the outstanding sum (as no payment had been made at that point).
8. A Liability Order was issued for the outstanding sum but the Council agreed to cancel this if a payment plan was agreed.
9. The question of whether Property B should be subject to Business rates can only be determined by the Valuation Office Agency (which is out of our jurisdiction).
10. If Mr X considers that he was not properly notified of the Liability Order hearing he could have asked for the decision to be set aside. The court could have considered the question of liability and whether rate relief applied.
11. Nevertheless, the Council’s agreement to suspend enforcement and waive costs is, in my view, a suitable remedy to the matter.
12. Mr X says that he was told the whole premises would be exempt from Business rates. However, the Ombudsman would expect any such assumptions to be confirmed in writing by the Council (or Valuation Office Agency) prior to taking out a lease. Nevertheless, Mr X can pursue his case with the Valuation Office Agency (and seek a review)

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Final decision

13. We will not investigate Mr X’s complaint because the matter has been remedied and the question of liability is a matter for the Valuation Office Agency and the courts.

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Investigator's decision on behalf of the Ombudsman