I think it's unreasonable to blame local authorities of so much, given that the Tories, and many in New Labour, have been happily dismantling their funding and governance structures for a generation now, leaving inadequate resources for many tasks and Local Authorities more or less disempowered.
Combine that with the utter contempt expressed for local authority and public sector employees, and a political rhetoric accusing them being parasitic pension-hogging incompetents, worthy only of tossing to Capita and Serco on a whim, and you also see an impact on recruitment and retention in the sector. Hence we do not have the quality of public sector employees we might have had in, say, the 1930s to 1950s.
In short, we voted for privatisation and a small state.
Then we got the public sector we deserve.
(By the way, Murdoch is poised to take over the education side of things and teach your children via computer instead of via people, so watch this space).