Summary: We have ended our investigation into whether Miss X is liable for business rates. The Ombudsman cannot alter the business rating list or decide on Miss X’s liability. We cannot achieve the outcome Miss X wants. The Valuation Office Agency is responsible for updating the business rating list. We cannot investigate the actions of the Valuation Office Agency.

The complaint

1. Miss X complained the Council failed to act on information regarding her business lease in 2022, resulting in it pursuing her for business rates she should not have to pay. Miss X says the Council delayed re-valuing her property for the Valuation Office Agency and has since refused to backdate the correct rates. She says this has caused her severe distress and time and trouble pursuing the matter. She wants the Council to apologise and cancel the business rates charge.

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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:

• we cannot achieve the outcome someone wants, 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 evidence provided by Miss X and the Council as well as relevant law, policy and guidance.
4. Miss X and the Council have had an opportunity to comment on my draft decision. I considered their comments before making a final decision.

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What I found

The Law

5. Business rates are a local tax on business premises. Each property in the rating list is given a rateable value by the Valuation Office Agency (VOA). Some properties are exempt from rating.
6. Councils have the power to further reduce the business rates of eligible premises on top of any statutory business rate relief a business is entitled to. This extra relief is usually called ‘discretionary business rates relief’. (Section 47, Local Government Finance Act 1988)
7. Councils cannot award discretionary rate relief for a particular financial year more than six months after the end of that year (Section 47 Local Government Finance Act 1988)
8. The VOA, part of central government, keeps the business rating list. The VOA decides if a property should be rated, the rateable value and the date each property enters and leaves the list. The VOA re-values business rates every three years. If someone wants to challenge the VOA’s decisions they have the right of appeal to the Valuation Tribunal.
9. The Magistrates’ Court decides business rates liability, if a council applies for a liability order.

What happened

10. In July 2022 Miss X became the tenant of two business units, A and B. Both units were listed as one rating unit in the business rating list. Miss X immediately sublet business unit B to another company she owned. Miss X says she told the Council the units needed to be split for business rates billing and both would now qualify for small business rates relief (SBRR).
11. It is not clear what advice the Council gave Miss X in 2022, but both the Council and Miss X agree that she contacted the Council again in March 2023. The Council told Miss X to contact the VOA about splitting liability for the units. It said it could not amend the business rating list. Miss X contacted the VOA. The Council wrote to Miss X on the 21 March 2023 confirming to Miss X that she needed to contact the VOA.
12. The VOA issued its new business ratings list for the next three years on 1 April 2023. At this time, it closed the previous list to amendments. The units remained as one unit.
13. Miss X says she was unaware the units had not been split until 2025 when she received a bill for business rates on both units as a single rating unit. Miss X contacted the Council and the VOA. The VOA carried out an inspection of the units and split their liability back to 1 April 2023. The VOA said this was the earliest liability could be determined as this was when the current business rating list started.
14. Miss X complained to the Council. She acknowledged she had been told to contact the VOA to split liability in 2023 but said she had not received any confirmation this had been done. However, she said the Council was responsible for not correcting the error and arranging an inspection sooner. The Council did not uphold Miss X’s complaint. It said it was a matter for the VOA.
15. The Council recalculated the business rates for units A and B and issued a new bill on 16 April 2025. It maintained that a balance was due for the period 1 July 2022 to 31 March 2023 when the rateable value of units A and B exceeded the threshold for SBRR.
16. The Council issued a stage two complaint response on 29 April 2025. It repeated that it could not split liability for the units before 1 April 2023 and that it had told Miss X to approach the VOA in March 2023 at the latest. Miss X remained unhappy and complained to the Ombudsman.
17. The Council continued to seek recovery of the unpaid business rates and issued Miss X with liability orders for the debt. A court summons was issued in August 2025. The Council later adjourned these cases pending the outcome of the Ombudsman’s investigation.

My findings

18. The Council told Miss X this was a matter for the VOA in March 2023, and Miss X contacted the VOA at this time. Only the VOA can make changes to the business ratings list and any complaint about a failure to do so is for the Parliamentary and Health Service Ombudsman (PHSO).
19. In addition to this only the Magistrates Court can decide whether Miss X is liable for the business rates billed by the Council. The Council has issued liability orders, and it is open to Miss X to dispute these in court. Miss X says the Council should offer discretionary rate relief. This is a decision for the Council. We cannot order the Council to do this.
20. I have ended my investigation. The Ombudsman cannot alter the business rating list or decide on Miss X’s liability. We cannot achieve the outcome Miss X wants. Any complaint about the VOA’s delay in reviewing the business ratings list is for the PHSO and we have no power to investigate it.

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Decision

21. I have ended my investigation and do not uphold Miss X’s complaint. I cannot achieve the outcome Miss X wants from further investigation. Any delay in updating the business rating list is a complaint about the VOA and we have no power to investigate its actions.

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Investigator's decision on behalf of the Ombudsman