The issue here is that the Government through its ideological "austerity" has turned councils into financial brokers for Central Government Cuts.
By doing so, it has reduced local democracy, by attacking councils autonomy to make informed decisions of those who know the demographics of their own areas, and the needs and priorities of their people. We have an ideological battle, not an economic "necessity", to transfer power to the rich elite and make the poorest pay. Its a deliberate policy by Central Government.