Summary: Mr X complained the Council failed to comply with one of the recommended actions it agreed to complete following the Ombudsman’s investigation into his original complaint about how the Council handled his business rates account and its recovery action. There was fault by the Council for its failure to properly consider and complete the action within the agreed timeframe. This caused uncertainty and further distress to Mr X. The Council will take action to remedy the injustice caused.

The complaint

1. Mr X complained the Council did not comply with one of the recommended actions it agreed to complete following the Ombudsman’s investigation into his original complaint about how the Council handled his business rates account and its recovery action.
2. Mr X said as a result the Council continued to insist his business paid the monthly repayment plan of £1,000 which Mr X maintained was not affordable.

Back to top

The Ombudsman’s role and powers

3. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused significant injustice, or that could cause injustice to others in future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
4. If we are satisfied with an organisation’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

Back to top

How I considered this complaint

5. I considered evidence provided by Mr X and the Council as well as relevant law, policy and guidance.
6. Mr X and the Council had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

Back to top

What I found

7. On 13 January 2025, we issued our final decision statement on Mr X’s original complaint 23013997 about how the Council handled his business rates account and its recovery action. We made recommendations which the Council agreed to complete within one month of our final decision. This was to remedy the injustice caused to Mr X by the Council’s identified failings in that complaint. One of the recommendations we made was for the Council to:

• review Mr X’s £1,000 monthly repayment plan. The Council should consider Mr X’s personal circumstances and set up an affordable payment plan with him to support him clear his arrears.

8. On 11 February, the Council informed the Ombudsman it had completed a further review of Mr X’s business finances based on the information filed on Companies House. The Council said it was its understanding that a reasonable monthly repayment plan to clear Mr X’s business rate arrears had already been offered to him.
9. On the same day, the Council informed Mr X it found it was reasonable to request £1,000 per month payment towards his business rate arrears after its further review of his business finances. The Council said if there had been changes in Mr X’s circumstances, he could contact the enforcement agent (EA) for further support with the repayment plan.
10. Mr X complained to the Ombudsman that the Council failed to comply with our recommendation to review the £1,000 monthly repayment plan with him. Mr X said the Council did not consider his circumstances and it continued to demand the £1,000 monthly payment for his business rate arrears which he maintained was unaffordable.
11. In response to my enquiries, the Council said:
1. the £1,000 repayment plan had originally been agreed between the EA and Mr X’s business in November 2023.
2. based on the Ombudsman’s recommendation, the Council instructed the EA on 10 February 2025 to contact Mr X to discuss a repayment plan. It said Mr X did not answer the EA’s telephone call.
3. it then instructed the EA to write to and invite Mr X to provide his financial circumstances and evidence to support his request for a lower repayment plan.
4. on 12 March, the EA sent the letter to Mr X. It said it would place a 7 day hold on recovery action to allow Mr X time to submit his financial information and asked him to make an offer of repayment which it would consider.
12. The Council said it was prepared to agree a suitable repayment plan upon receipt of Mr X’s offer of repayment and the requested financial information/documents.

Analysis

13. The Council agreed to complete the recommended action one month after we issued our final decision. This meant the Council should have completed the agreed action on 10 February 2025. The Council did not complete the recommended action within the one month agreed timeframe. While I note the Council said Mr X did not answer the EA’s call on 10 February, I find the initial call and letter sent by the EA should have been done before the agreed one-month timeframe. This was fault and it caused further distress to Mr X.
14. The Ombudsman’s role is not to agree or disagree with councils’ decisions about repayment plans with its residents. Instead, we look at how the council considered relevant factors in making its decisions. In this case, there was no evidence to show how the Council properly reviewed the £1,000 repayment plan it had originally put in place and how it decided the same amount remained affordable for Mr X after we issued our final decision in January 2025. This was fault. It caused distress and uncertainty to Mr X in not knowing whether the Council properly considered his circumstances when it maintained the £1,000 monthly payment remained reasonable to clear the outstanding debt.

Back to top

Action

15. To remedy the injustice caused by the faults identified, the Council has agreed to complete the following within one month of the final decision:

• properly review the £1,000 repayment plan and set up an affordable payment plan with Mr X to support him clear his business rate arrears
• apologise in writing to Mr X and make him a symbolic payment of £100 to acknowledge further distress and uncertainty caused to him by the Council’s faults as identified above. The apology should be in accordance with our guidance, Making an effective apology.

16. The Council should provide us with evidence it has complied with the above actions.

Back to top

Decision

17. I find fault by the Council causing injustice to Mr X. The Council will take action to remedy the injustice caused.

Investigator’s decision on behalf of the Ombudsman

Back to top

Investigator's decision on behalf of the Ombudsman