Summary: We will not investigate this complaint about the construction work which overran and the Council’s decision not to pay compensation. We have not seen enough evidence of fault in the Council’s actions.

The complaint

1. Mr X complains delayed construction work on the road outside his business caused disruption and loss of trade.
2. He says this caused financial loss and wants compensation and business rates relief.

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The Ombudsman’s role and powers

3. 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.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

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

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My assessment

6. Mr X runs a business which is on a road where major construction work was taking place for some months. He says the noise and disruption from the work which overran has badly affected his business and caused significant financial loss. Mr X wants compensation for the financial loss and a discount on his business rates for the coming financial year.
7. The Council confirms it visited the site and required the contractor to stop cutting paving slabs and other noisy work after 6pm. I consider this is an appropriate action to mitigate the impact of noise on Mr X’s business.
8. Mr X wants compensation. There is no statutory compensation for businesses affected by road works. Governments have taken the view that businesses should not have the right in law to any particular level of passing trade. And that traders must take the risk of loss due to temporary disruption along with all the other various risks of running a business. In this case the Council has no obligation to compensate Mr X.
9. When considering complaints, we may not question the merits of the decision the Council has made or offer any opinion on whether we agree with the judgment of the Councils’ officers or members when there is no fault. This means we will not intervene in disagreements about the merits of decisions.
10. Mr X has also asked for a reduction or full relief on business rates. However, the Council does not administer business rates. Mr X can contact the Valuation Office Agency (VOA) if he believes the disruption from the construction work has affected the value of his business property. The VOA will decide whether he should receive a reduction in business rates.

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Final decision

11. We will not investigate Mr X’s complaint because there is not enough evidence of fault in the Council’s actions.

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Investigator's decision on behalf of the Ombudsman