North Somerset Council has been compelled to pay compensation after mistakenly instructing bailiffs to collect £928.95 from the wrong business. In July 2024, bailiffs arrived at the premises of a company identified only as “Company Y,” demanding payment for unpaid business rates. To avoid reputational damage in front of staff, the company reluctantly paid the sum.
Subsequently, the council has agreed to refund the amount taken and compensate Company Y with an additional £200 for the distress and inconvenience caused. The Local Government and Social Care Ombudsman found the council at fault for failing to update its records after being notified in August 2023 that Company Y had moved into the office.
The ombudsman’s report, published on June 17, highlights a series of communication failures between the council and the business. Notably, no liability order for unpaid rates had been issued to Company Y for the premises involved, yet enforcement agents pursued payment regardless.
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The report states: “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.”
Breaking down the sum taken, £523.92 was for actual business rates owed, £310 covered bailiff fees, and £95 went towards court costs. Although the rates pertained to April 2024 — a period during which Company Y occupied the office — the council had not acknowledged Company Y as liable.
The ombudsman emphasized that if the council believes Company Y owes money, it must issue an official bill and follow the proper recovery procedures. In response to the mishandling, the council was ordered to refund the full amount, issue an apology, and provide two £100 payments: one for the distress caused by bailiff visits and another for the time and trouble Company Y incurred addressing the matter.