Summary: We will not investigate this complaint about Business rates liability as this is a matter for the courts.

The complaint

1. Mr X complains that the Council holds him liable for Business rates on property which he disputes.

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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.
4. I considered the Ombudsman’s Assessment Code.

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My assessment

5. Mr X says that he rented two properties, one of which he left in March 2022 and left the second in June 2022. He says that the Council has never accepted that his evidence of this. He says that he has attended Liability Order hearings online but been unable to take part.
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. 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 can apply for a Liability Order to be set aside if he was unable to take part in the magistrate’s hearing.

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Final decision

10. We will not investigate Mr X’s complaint because it is a matter for the courts.

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Investigator's decision on behalf of the Ombudsman