Summary: We will not investigate this complaint about the Council’s refusal to refund an overpayment of business rates to a liquidator. This is because it would be reasonable for the liquidator to make a claim against the Council at court.

The complaint

1. Mr X complains the Council issued a refund for overpayment of business rates to a third party in error. He says he has asked the Council to refund the overpayment to the liquidator but the Council has refused as it has already made payment to someone else.

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The Ombudsman’s role and powers

2. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
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)(c), as amended)

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How I considered this complaint

4. I considered information provided by Mr X and the Ombudsman’s Assessment Code.

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My assessment

5. It is not our role to decide who the Council should have refunded the overpayment to; we cannot therefore say it was fault to make issue the refund to the third party, or that it should have paid the liquidator instead.
6. If the liquidator believes they are entitled to the refund it would be reasonable for them to make a claim against the Council at court. As part of this process the liquidator may also claim for Mr X’s costs in dealing with the matter on their behalf.

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Final decision

7. We will not investigate this complaint. This is because it would be reasonable for Mr X to take the matter to court.

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Investigator's decision on behalf of the Ombudsman