North Somerset Council sent bailiffs to recover almost £100k from wrong business
Council enforcement agents showed up at the offices of a business in July 2024 demanding £928.95 for unpaid business rates
North Somerset Council has been ordered to pay compensation after sending bailiffs to recover almost a thousand pounds from the wrong business.
Council enforcement agents showed up at the offices of a business — only referred to as “Company Y” — in July 2024 demanding £928.95 for unpaid business rates. The company paid up to prevent the bailiffs “damaging its reputation in front of staff” — but now the council has agreed to repay the money along with £200 in recognition of the distress and time and trouble to the business.
The Local Government and Social Care Ombudsman found that the council had been informed that the company had moved into the office in August 2023 but that the council had not updated its records. A report published by the ombudsman on June 17 reveals shambolic communications between the council and the business, with the council appearing not to know the offices the company occupied or how much it had paid to bailiffs.
The report said: “A liability order for unpaid business rates for office 1 has not been issued to Company Y. However its enforcement agents pursued Company Y for unpaid business rates. This is fault. As a result Company Y paid £928.95 to the council’s enforcement agents. Its enforcement agents also attended Company Y’s premises to recover the debt. This has caused financial disadvantage and distress. This is injustice.”
Only £523.92 of the money taken by the bailiffs covered the actual unpaid business rates. £310 was the fees for the bailiffs themselves and £95 covered court costs.
The unpaid business rates related to the period from April 2024, while Company Y was occupying the office, but the North Somerset Council had not recorded it as liable. The report said: “If the council thinks Company Y is liable it should issue it with a bill and follow the correct process to recover any monies it thinks is owed.”
The ombudsman ordered the council to repay the money to Company Y, apologise, make a £100 payment in recognition of “distress caused by the council’s enforcement agents attending the business premises” and make a further £100 in recognition of the time and trouble the business spent pursuing the matter.