Summary: We will not investigate this complaint about Business rates because there is no evidence of fault by the Council and it can be a subject of legal action in the courts.

The complaint

1. Mr X complains that he was unaware of enforcement action by a Council for non payment of business rates. The Council now has a Liability Order against him.

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The Ombudsman’s role and powers

2. We have the power to start or end an investigation into a complaint about actions the law allows us to investigate. We may decide not to start or continue with an investigation if we think the issues could reasonably be, or have been mentioned as part of the legal proceedings regarding a closely related matter. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended, section 34(B))

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How I considered this complaint

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

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My assessment

5. Mr X says that he was sent a summons in January 2024 for a hearing later that month. However, he says that he was out of the country during this period and so was unaware of the matter until his return after the hearing.
6. To use the powers available to it to recover unpaid business rates, a council must apply to a magistrate’s court for a liability order against those it believes are liable. Once a council has obtained a liability order it can take recovery action.
7. A liability order gives a council the legal power to take enforcement action to collect the business rates and court costs owed. It can then use enforcement agents, take insolvency proceedings or ask a court to send the debtor to prison for non-payment. The council can decide which recovery method to use but it can only use one method for one liability order at one time.
8. The magistrates’ court decides liability for rates. A council can apply for a liability order and the person it thinks liable can defend themselves. The case law on rates liability is technical and this is something where we do not have enough expertise to make decisions about fault. So I am exercising my discretion not to investigate this complaint as the court is the most appropriate place to decide on Mr X’s liability. The court can also consider a claim for any associated costs. We can only recommend remedies for injustice caused by faults. So the court is better placed than us to reach a meaningful outcome.
9. Mr X says the Council should cancel the Liability Order. However, there is no evidence of fault by the Council which would warrant any such remedy. Mr X could ask the Council for the Liability Order to be set aside himself.

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Final decision

10. We will not investigate Mr X’s complaint because it is a matter for the courts and there is no evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman