The article, per its title, discusses How Web 2.0 will transform local councils.
Rightly or wrongly, Bill draws a strong connection between the core goal of local government and the intent of Web 2.0 technologies,
Government is, by its very nature, all about community. Government is a group of people - citizens or constituents - doing together what they can't do as individuals or otherwise obtain from private business. I believe most of us wouldn't want individuals or private businesses to manage street networks, maintain parks or operate police and fire departments. In the end, government is community.
Therefore, Web 2.0 - community building tools - seems tailor-made for government, at least theoretically.