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A practical guide to council tax complaints

An adviser guide to making an effective complaint to a local authority or Ombudsman following a council tax dispute.

What you can complain about

Most complaints about council tax involve the way a local authority has reached or implemented a decision.

A decision by a public authority that has been reached or implemented incorrectly is classed as maladministration. Maladministration includes:

  • poor communication and delays

  • not following policy, procedure or law

  • not exercising discretion correctly

  • acting disproportionately, unjustly or excessively

Read more about maladministration complaints on Shelter Legal.

When a dispute must go to the tribunal

Some decisions a local authority makes about council tax have a formal appeals process through the Valuation Tribunals.

A decision that has a right of appeal to a tribunal must follow that process. It cannot be raised as a complaint.

Decisions about liability for council tax, whether a dwelling is exempt, or the amount of the bill are appealable.

Read more about liability for council tax and exempt dwellings on Shelter Legal.

Gather the right facts

Before starting the complaint, make sure you have all the relevant information.

Help your client set out a timeline

Set out details of what happened, in date order. Ask your client what evidence they have to support their account of what has happened.

Evidence could include paperwork and letters, or notes of a phone call they made to the council.

Your client's recollection of events is likely to be more convincing if it is detailed and specific.

Make a subject access request to the local authority

You can help your client make a subject access request to the local authority. This gives the local authority one calendar month to provide copies of all documents and recordings they have about your client.

The records you receive could include copies of letters, emails, forms, and transcripts of phone calls.

The Information Commissioners website has more information about how to make a subject access request and what to expect from the local authority.

Get a copy of the complaints policy

All local authorities have a complaints procedure.

You can request a printed copy if the policy is not available on the website.

The complaints policy should explain the relevant time limits for making a complaint. There might be a two stage process set out in the policy. For example, a first complaint and a review stage.

The policy should set out what to do if the person making the complaint is not satisfied with the response.

The Ombudsman can investigate complaints where the local authority has failed to supply a policy or does not have a policy that covers your client's situation.

Raise a complaint with the local authority

The first step is to complain to the local authority.

The Local Government and Social Care Ombudsman will not deal with a complaint unless it has been through the local authority complaints process.

Identify the reason for the complaint

Setting out the reason for the complaint can help to ensure it is dealt with correctly.

The reason for the complaint could be related to:

  • late billing or bills being sent to the wrong person or address

  • using inappropriate or unnecessary enforcement

  • refusing to accept reasonable payment proposals

  • failing to provide notice of possible reductions, discounts, or exemptions

  • failing to provide notice of a right to review or appeal

  • the conduct of enforcement agents acting for a local authority

Set out the details of the complaint

Use your timeline to set out exactly what happened in date order.

Set out the facts as clearly as possible. Point out where a letter, email or phone call took place that could confirm your client's version of events.

Your client might be upset about how the local authority has treated them. Remind your client that it is important the language is polite and clear. The paperwork you submit now might be read by the Ombudsman, who can consider if your client has acted reasonably.

What to include in the complaint

Set out the personal and financial impact of the local authority's failings. Include as much detail as you can, to demonstrate the effect they have had on your client's life.

State what your client would like the council to do to put things right. This could include changing a decision.

Your client can ask for compensation. If awarded, the amount is likely to be small unless the fault has caused significant financial loss for your client.

Escalate the complaint to the Ombudsman

If the complainant is not satisfied with the local authority response, they can escalate their complaint to the Local Government and Social Care Ombudsman.

Section 26 Local Government Act 1974 gives the Ombudsman the power to investigate complaints about local authorities.

The Ombudsman can only consider complaints that have resulted in personal injustice. It cannot consider wider grievances about policies.

Complaining to the Ombudsman is free.

Ombudsman complaints where the authority has failed to respond

The Ombudsman can also deal with complaints where the council has taken too long to respond to the initial complaint. Twelve weeks is normally considered a reasonable time for the council to respond.

The Local Government and Social Care Ombudsman website has more information about making a complaint.

Problems the Ombudsman will not investigate

The Ombudsman will not investigate complaints where there is a right to use a formal appeals procedure.

This includes most decisions about liability for council tax. Decisions that must be appealed include those about whether the:

  • dwelling is exempt or chargeable

  • taxpayer is entitled to a reduction

  • landlord or tenant is liable to pay the bill

The Ombudsman must provide a statement of reasons if it decides not to investigate.

Matters subject to court proceedings

The Ombudsman will not investigate complaints where the matter is already subject to court proceedings.

The fact a local authority has obtained a liability order does not prevent an investigation.

Complaint is insignificant

The Ombudsman could refuse to deal with the complaint if it thinks the fault has been too small, or the impact on the client has been insufficient to merit an investigation.

How the Ombudsman can put things right

The Ombudsman has a number of options to resolve a complaint about council tax.

Recommend the local authority take specified steps

The Ombudsman can recommend the local authority take specified steps. For example, it could instruct the council to:

  • withdraw enforcement action

  • reconsider a payment proposal

  • reduce costs that have been charged

Recommend a change in policy

The Ombudsman can recommend the local authority change their policies or procedures, where these have led to an injustice.

Recommend financial compensation

The client could be awarded financial compensation, for financial loss, though the local authority can normally offset this against any debt the client owes.

Reporting the decision

The Ombudsman must prepare a report once it completes an investigation. If it is satisfied with the steps the local authority has taken or proposes to take, it can make a statement of reasons for the decision.

The decision or statement must be supplied to everyone concerned.

There is no procedure to enforce an Ombudsman decision, but it is very rare for a local authority not to do as recommended.

Examples of successful Ombudsman complaints

The Local Government and Social Care Ombudsman reports outcomes to some of the complaints it investigates.

Unnecessary council tax recovery action

The complaint

The taxpayer set up a standing order to pay council tax, but did not include the council tax reference number on the form. Payments were not credited to the correct account.

This was not rectified by the local authority once it was informed. This resulted in arrears being carried forward, and enforcement action being taken against the taxpayer.

The outcome

The Ombudsman found maladministration on the part of the local authority. It ordered £1,800 compensation to be paid to the taxpayer.

It also recommended the local authority make changes to its accounting systems.

Report reference: Hackney Borough Council (03/A/09613) 7 October 2004.

Find out more about council tax recovery on Shelter Legal.

Wrongful seizure and sale of car

The complaint

Enforcement agents acting for a local authority seized and sold a car for a debts that had arisen in respect of council tax arrears and penalties for road traffic offences.

The taxpayer had explained that the car was needed for work and was therefore a protected 'tool of the trade'.

The outcome

The Ombudsman found that the local authority and its enforcement agents had not followed the correct procedure under the Taking Control of Goods Regulations 2013. It found 20 separate faults in how the debt had been handled.

The authority agreed to pay compensation of £1,050 for distress, time, and the car's value when sold at auction.

Report reference: Merton London Borough Council (18 010 732) 2 July 2020.

Find out more about council tax enforcement on Shelter Legal.

Recovery action against taxpayer with no income

The complaint

A local authority had instructed enforcement agents to take recovery action for council tax arrears despite being informed the taxpayer was vulnerable, had no income, and was dependent on its own social services department.

The outcome

The Ombudsman found the local authority was at fault for not taking into account the information supplied by its own social worker and for not having a written policy on dealing with vulnerable people.

It recommended the debt to be written off and £250 compensation paid to the taxpayer. It also recommended the authority implement a policy on dealing with vulnerable people.

Report reference: Slough Borough Council (08 009 315) 4 April 2009.

Find out more about council tax enforcement on Shelter Legal.

Bankruptcy petition must be a last resort

The complaint

The local authority petitioned for the taxpayer's bankruptcy for council tax of £1,105. It had not attempted other enforcement methods, such as a charging order before applying to make the taxpayer bankrupt.

By the time of the complaint the costs of the bankruptcy had risen to £38,000.

The outcome

The Ombudsman found maladministration resulting in injustice. The local authority should have pursued other options such as a charging order to secure the debt before applying for bankruptcy.

The Ombudsman criticised the local authority over its failure to have a detailed written policy covering bankruptcy petitions.

The local authority was recommended to pay the full costs of annulling the bankruptcy.

Report reference: Ford v Wolverhampton City Council [2008] BPIR 1304

Find out more about council tax enforcement on Shelter Legal.

Other ways to resolve disputes

Depending on the nature of the problem, there might be an alternative way to resolve the council tax dispute.

Appeal to the Valuation Tribunals

A challenge about liability to pay, or the amount of the council tax bill is normally dealt with by an appeal to the Valuation Tribunals.

Report to the local auditor

Local authorities must ensure that public money is properly accounted for and that funds are spent in line with the law and proper standards. Funds must be used economically, efficiently and effectively.

Concerns about the use of local authority funds can be reported to the local auditor who can investigate and take action.

This process has been used to challenge the amount of costs charged to people in council tax arrears following the local authority's application for a liability order.

Claim for damages in the County Court

Local authorities fall under the jurisdiction of the civil courts, including the small claims procedure.

Most disputes are better directed to the Ombudsman or the Valuation Tribunals. Occasionally, an individual could bring a claim for damages if they have been wrongfully pursued for council tax arrears.

Apply for judicial review in the High Court

Decision of public bodies like local authorities can be challenged by an application for judicial review. The High Court can cancel a wrongful decision or order a local authority to stop doing something unlawful.

Claimants must follow a three step process, starting with a letter of claim, then apply to the court for leave, before making an application for judicial review.

An application for judicial review is likely to require legal assistance and representation and can be very expensive. It should usually only be considered as a last resort.

Complain to the Enforcement Conduct Board

Complaints that are solely about external enforcement agents recovering council tax can be directed to the Enforcement Conduct Board.

The complaint can be escalated to the Local Government and Social Care Ombudsman if the complainant is not satisfied with the outcome.

Find out more about the complaints procedure on the Enforcement Conduct Board website.

Council tax resources

Shelter Legal has information about council tax including:

  • liability for council tax

  • chargeable and exempt dwellings

  • recovery and enforcement

Read more about council tax on Shelter Legal.