Typical council a*se covering
Reading the full Times story, basically the council have been messing up recently and accidentally installing signs without the apostrophes. A few pedants have complained, and the council have figured out it will cost a lot to fix (with the side effect of making them look like idiots). So they have decided to justify a policy of no longer using apostrophes, based on totally nonsensical arguments. Saves them fixing the problem.
It is hilarious to see the councillor (hopefully an intelligent and educated man) pretending that he thinks the correct grammatical form of a phrase depends on whether it is actually true. FFS, should all fictional works omit apostrophes because the characters don't really exist?
The emergency services database argument has also been debunked here.
The council are covering their own mistakes.
The reason this is important is because councils do exactly the same when they screw up over something which actually matters. Like schools. Police, protecting vulnerable children, town planning etc etc.