Vicar fails in court challenge to auditor decision on council tax summons costs

The Divisional Court has rejected an appeal by an anti-poverty campaigner over a council auditor’s refusal to make a declaration of an unlawful item of account or issue a public interest report.

Reverend Paul Nicolson had appealed under the Audit Commission Act 1998 against a decision of Grant Thornton, auditor for the London Borough of Haringey, over charges in relation to council tax summonses.

Rev Nicolson had previously secured a declaration from the High Court that a £125 costs order made by magistrates for a council tax summons was unlawful.

Mrs Justice Andrews concluded – amongst other things – that the magistrates did not have sufficient material before them to reach a proper judicial determination of whether the costs claimed represented costs reasonably concurred by the council in obtaining the liability order.

The judge also said the magistrates erred in law by failing to make further inquiries into how the £125 was computed and what elements it comprised.

According to a note on the retired vicar's second case prepared by Peter Oldham QC of 11KBW, Rev Nicolson separately objected to Grant Thornton’s decision that Haringey had sufficient information to decide that £125 was a proper charge, and that the item of account was lawful.

The sum included aggregated costs, both direct and indirect, divided by the number of council tax summonses which the council had to deal with each year.

Lord Justice Hamblen and Mr Justice Baker in the Divisional Court rejected Rev Nicolson’s appeal, refusing to say that Grant Thornton’s decision was unlawful. The auditors had considered the relevant factors and given cogent reasons for their view.

The judges reportedly ordered Haringey to pay its own costs of £12,000 and Rev Nicolson to pay Grant Thornton’s costs of £50,000.

Responding to the ruling, Rev Nicolson said the costs order did not worry him. “They cannot have what I have not got.”

He added: “Far more serious is the way Grant Thornton, Haringey’s auditors, and the High Court Judges ignore the plight of benefit claimants in Tottenham and Haringey who, since April 2013, cannot pay the council tax let alone the court costs and bailiffs fees.

“32,000 summons to the magistrates court were despatched by the council to late and non payers in 2013/14 adding £125 to the arrears when the adult benefit is £73.10 a week.”

Rev Nicolson added: “The auditors say poverty incomes are not relevant; the judges said nothing.

“I am talking to lawyers about appealing on several legal points related to private companies undertaking public duties. Auditing Haringey’s acounts was privatised in 2012.”