Balbi
Hey, Dean Yager!
I think you're underestimating the ease with which a Tory cabinet minister could suspend the whole infrastructure of local democracy, override the wishes of the electorate and face down an enraged union workforce and local community. They could try, but especially if it was to occur in more than one area, this wouldn't be in any way straightforward.
It's not so much that they could try, but that it is the process of what happens. The legislation was introduced in the late eighties, and given a bit of a polish recently I believe. The section 5 officer on the council reports the setting of the budget to the finance director and whitehall dept, the council gets a couple of warnings to set a proper budget, and then they lose the power to set budgets. And if you think they would give a fuck, you're very wrong.
There's no good Rocky IV'ing about it - it'd take Labour councils everywhere doing it, and having support in doing it.