I wouldn't bother with Ofcom as problems like this are well outside their remit and they wouldn't be able to deal with individual complaints.
In theory the LA should not refuse issuing permits due to previous sub-standard reinstatement as the LA would have asked VM to repair the poor works in a given time frame and if VM do not comply the LA can fine VM and do the repairs themselves and charge VM an arm and a leg to do so.
It does look like VM and the LA are in some dispute over the poor reinstatement as you say, jobsworth and stubborn attitudes may be playing a part in drawing the dispute out. A VM Forum Team member would be able to look into it from a VM perspective and maybe able to clarify why VM are saying they have applied for permits multiple times and the LA saying they have only received one application.
Did your neighbour say what needed to be done for their installation? I just find it a bit strange that VM are saying that your installation cannot be done due to a "blockage" (on the standard VM excuse list) and your neighbour is still waiting for a connection after 6 months, I am just wondering if the infrastructure is in place to cable your street.
It maybe worth badgering your local councillors as they may know what is going on behind the scenes and probably your best bet for a straight answer. If you get no joy, maybe a group complaint to your MP might be in order as Councils treat MP enquiries as top priority. (learnt the hard way )
Personally, I wouldn't hold out much hope for a quick resolution seeing it looks like VM and the LA are at loggerheads. It might be worth getting your Broadband elsewhere and looking at VM after your alternative supplier's contract has expired. However, I would let the VM Forum Team look into it before committing to anything.
Not sure if I am replying properly, so hope you get this. We had same issue in February. I checked out our move install months in advance. Was told all ok and road checks woukd be made many weeks before our move. Call from non uk based person 2 days before our move to say the road was blocked by a tree and would need digging up, would take 5-9 weeks with council permission. We couldn’t wait as both husband and I work at home frequently. BT stepped in with a days notice (although their set up has proved to be inferior on the TV front). VM then tried to hit us with a huge early termination fee as I had renewed our services last autum to the very top package after checking they could supply our new house. After numerous emails (found a great email address in a blog) and a call from someone lovely high up at VM we were finally released with an apology.
We do want to come back for the great V6 box but our nightmare now is trying to get installed. Road dug etc, install date yesterday, but let down by engineer at 6pm. We were his last call and he couldn’t be bothered to come to us despite the reassurances we had received all day that they do not go home for tea until the last customer is happy. Engineer actually put hevphone down on me when I told home we were assured he would come even if it was after 6 pm. Hence me back on the forum today after 6 years pause. If you’d like the top guy’s email try to PM me and I’ll send back. I’ve been emailing every VM address I know overnight to complain about latest issue.
I’ve just flagged my own post for a moderator with the comment, ‘it’s totally inappropriate that VM try to charge for termination when they can’t deliver in reasonable time and do not turn up for an installation.’ Hopefully they’ll now notice my complaint.
Just a update on situation I have spoken to my local council today and manage to speak to the person who deals with permits she has confirmed my road has a section 58 as it’s been resurfaced recently but they will allow work to be carried out while section 58 is in place but it has some conditions obvisouly to put everything back how it was basically. She has given me some good information to help me regarding permits. She also told me about my neighbours issue and basically it’s not the council who are not doing job properly it’s vm they send a request in for work to be done the council tells them its a section 58 with conditions and wait for reply but don’t receive confirmation vm will adhere to conditions vm then waits a period of time and resends original request and again council replies with same conditions and it’s a circle. The lady at the council also told me she has 3 days to look a permit request once received so all this waiting seems to be on vm end. She told me they should have a permit request number and vm should have it when I phoned the install team they said they can’t see that number as a diff team deal with it o asked to be transferred and they say they can’t do this so I get no information apart from the have applied to council for permit the lady tells me there is no pending request for any work to be done yet so seems vm don’t know how to deal with this process very good