The UK state is using local governments as "human shields" to pass
budget cuts on to the people.
It is natural that local governments will raise taxes to fund the
activities they must do. This solves the immediate problem, but it is
not a fair solution.
Local governments can only tax the local inhabitants and local
businesses. However, wealthy people and big, profitable businesses
are not evenly distributed. In an area where most people are poor,
this puts a heavy burden on them. That's why the national government
needs to do the taxing, and distribute the money to all the local
governments.