Issue - meetings

[Report of the Assistant Director of Corporate Governance (Monitoring Officer). To be introduced by the Cabinet Member for Corporate and Civic Services.]

This report requests Cabinet consider and respond to the Local Government Ombudsman finding with regard to Ms B – bankruptcy.

The Cabinet Member for Corporate and Civic Services introduced this report which requested Cabinet consider and respond to the Local Government Ombudsman finding with regard to Ms B – bankruptcy.

The Cabinet Member informed that the Ombudsman had made a report finding fault with the Council in relation to a complaint made by Ms B and had asked the Council to take certain steps to remedy that fault. This report summarised the Ombudsman’s report and the steps that have already been taken. It also proposed further steps to be taken by the Council in response to the report.

The Cabinet Member noted the service had apologised for the mistakes made and was determined to learn from them. Members were required to consider the Ombudsman’s report (shown at Appendix 1) and the steps it was proposed to take in response with the Cabinet Member recommending that the findings, recommendations and compensation payments be approved.

In response to questions from Councillor Dennison, the Cabinet Member confirmed that to prevent an issue of this kind occurring again, the Council would be putting in place all the recommendations of the Local Government Ombudsman. Information would also be better shared between officers and the relevant Cabinet Member.

RESOLVED

1. To accept the findings and recommendations of the Ombudsman in the report dated 17th September 2019, as shown at Appendix 1.
2. To authorise officers’ reduction of Ms B’s debt by £3,400 as compensation, as set out in paragraphs 4.2 and 4.8 below.
3. To authorise officers to compensate Ms B by applying to annul her bankruptcy and paying the court and trustee costs of doing so up a value of £20,000, as set out in paragraph 4.6 below.
4. To adopt this report as the Council’s formal response under s.31 Local Government Act 1974, to be communicated to the Ombudsman.
5. To adopt this report as the Cabinet’s formal response as required by s.5A Local Government and Housing Act 1989, to be distributed to all members and the Monitoring Officer.

Reasons for Decision

Overview

As set out in the Ombudsman’s report, Ms B has been found to have suffered injustices as a result of faults on behalf of the Council. In summary:

• The Council’s procedure was to consider bankruptcy only if there were sufficient assets to pay the debt and costs incurred.
• Ms B’s property was mistakenly assessed as having sufficient equity to allow the Council’s debts and costs to be recovered. However, there was in fact insufficient equity.
• Therefore, bankruptcy was pursued contrary to the Council’s procedure.
• As part of good practice, the Council contacted the local authority where Ms B lives to ascertain any vulnerabilities Ms B might have. However, Ms B worked for her local authority and her colleagues were informed of her debt to the Council, causing her considerable professional embarrassment. The Council should have identified that Ms B worked for her local authority because this had been evident from her email signature.
• Ms B made a subject access request to the Council. The Information Commissioner  ...  view the full minutes text for item 110