Is the council governed by uk law?

hi, my taxi licence was suspended 3 months ago. The council suspended me due to an allegation being made against me but the police did not charge me but merely interviewed me and released me with no charge and nothing pending. i informed the council and they suspended me eventhough i was not charged. they made me explain what happenned and this i did and what i would like to know are they allowed to still have me suspended?