Summary: We will not investigate this complaint about the Council issuing a demand for non-domestic rates for business premises which were divided in 2017. The courts are better placed to decide liability for business premises.

The complaint

1. Mr X complained about the Council issuing a demand for non-domestic rates in 2023 for liability for premises which were sub-divided in 2017. He says it is unreasonable for the Council to demand payments for a change which it should have been aware of and billed him for six years earlier.

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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 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 continue an investigation if we decide:

• there is not enough evidence of fault to justify investigating, or
• there is another body better placed to consider this complaint.

(Local Government Act 1974, section 24A(6), 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 he received a non-domestic rates bill in August 2023 for a partially empty building which he sub-divided in 2017. The billing liability was for the period after 2017 to 2023 and amounted to over £220,000 which he says is unreasonable and unaffordable. He says he applied for planning permission in 2015 to sub-divide the building and the Council should have been aware of the implication for rating from this time.
6. The Council told Mr X that it was not informed of when or whether the planning applications resulted in the work being undertaken and that it only received the schedule for the changes in June 2023, resulting a billing for the liability being issued in the following August.
7. We cannot determine liability for non-domestic rates to for council tax liability. The latter carries a right of appeal to the Valuation Tribunal and the former can only be determined by action in the magistrates court. If the Council maintains that the liability is correct it will seek an order from the courts. Mr X will have an opportunity to defend is case to the Magistrates.

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Final decision

8. We will not investigate this complaint about the Council issuing a demand for non-domestic rates for business premises which were divided in 2017. The courts are better placed to decide liability for business premises.

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Investigator's decision on behalf of the Ombudsman