Local Council funding comes from the Council Tax which residents pay (38% of the total) and from Business Rates which companies pay (20% of the total). The other 42% comes from central Government grants, plus various fees and charges for permits, licences, applications, etc.. This funding then pays for numerous local services, from bin collections to school admissions.
One glance at the homepage of your local council’s website will be enough to convince you of the necessity of these services running smoothly and without interruption. Budgeting for them can be an extremely difficult task if there is not enough funding, since no-one wants cuts in the service they are employed in or are using!