It's a deflection of blame trick. Central government cuts funding to a local council. Local council then has to put up rates to keep services at the same level, and knowing this will not be popular, hold a 'referendum' which asks locals if they want to pay more or cut services. Better-off Tories, who have a majority in this area, and who can well afford to pay more, decide in a sociopathic frenzy to slash services instead. Less well off people protest about schools and social service cuts which affect them badly. Government says it is "nothing to do with us, blame the people who voted to cut services".