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London Borough of Tower Hamlets (25 027 228)

Category : Other Categories > Commercial and contracts

Decision : Closed after initial enquiries

Decision date : 24 Jun 2026

The Ombudsman's final decision:

Summary: We will not investigate this complaint about a commercial lease between Mrs X and the Council. This complaint was received outside the normal 12-month period for investigating complaints. There is no evidence to suggest that Mrs X could not have complained to us sooner.

The complaint

  1. Mrs X runs her business from a building she leases from the Council.
  2. Mrs X complains, in 2024, the Council carried out major works to the market where her business is located. She says the Council failed to properly assess the impact of the works. She complains the works caused serious disturbances to her business (including loss of access, constant noise and a lengthy poor trading environment). Mrs X says her business suffered an estimated 70% loss of income, a reduction in clients and she received complaints about the unsuitability of the environment for her business. She complains the Council refused to provide any rent reduction or compensation.
  3. Mrs X wants the Council to refund or reduce the rent for the period affected by the works, provide her compensation for business disturbance, and cancel rent arrears caused by the disruption. She says, due to the loss of income, she struggled to pay business expenses, which meant she had to stop paying rent.

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The Ombudsman’s role and powers

  1. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
  2. We cannot investigate late complaints unless we decide there are good reasons. Late complaints are when someone takes more than 12 months to complain to us about something a council has done. (Local Government Act 1974, sections 26B and 34D, as amended)
  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

  1. I considered information provided by the complainant.
  2. I considered the Ombudsman’s Assessment Code.

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My assessment

  1. Mrs X’s complaint about the Council’s construction works in 2024 and the impact on her business is late. We will not investigate this complaint because it concerns matters the complainant was aware of more than 12 months before she complained to us. I have seen no good reasons to exercise discretion to consider these issues now. Mrs X could have complained to us much sooner than February 2026 if she wished for us to consider these matters.
  2. We have some discretion to consider older complaints in some circumstances, but this would not apply here. Even if Mrs X had complained within 12 months, the matter centres on a dispute over the terms of a commercial lease, and the courts are best placed to consider such matters. We cannot determine legal contracts between private individuals and councils. It would be reasonable to expect Mrs X to take legal action to resolve any dispute about rent payments. These are legal matters and once the lease was signed only the courts could decide any disagreements about the terms.
  3. For the same reason, it is reasonable to expect Mrs X to pursue court action so far as her complaint concerns damage to her property, which she says was due to the construction works. We have no power to investigate negligence claims about damage to property. These are legal claims which may only be determined by insurers or the courts. We cannot decide liability or award damages. Any claim for damages, such as costs for repairs, are matters more appropriately dealt with by the courts.
  4. For the above reasons, we will not investigate this complaint.

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Final decision

  1. We will not investigate this complaint about a commercial lease between Mrs X and the Council. This is because the complaint is late, and there are no good reasons for us to consider it now.

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Investigator's decision on behalf of the Ombudsman

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