Your argument makes little sense, if you've ever been involved in a breach you'd know that it's typically down to one persons mistake initially then a series of mistakes over the course of the next few days as people try to cover it up. The "best" breaches are those where staff put their hands up so you can try to contain and get control back over that information (usually not possible, but sometimes it is), you can then notify the ICO and you can talk to those involved most importantly the data subjects who's information has been spewed.
In terms of "taxpayer coughing up" the monetary penalty goes from the council to central government, it doesn't go to the ICO and then essentially through loans etc to councils will end up back there eventually.
The public need to start understanding that public sector organisations, (especially the NHS - and I'm excluding GPs as those are PRIVATE contractors) are very good at self-reporting to the ICO. This is why the stats typically show that the public sector are AWFUL at handling information but in reality they are generally better than private firms, just that they are far happier to notify the ICO when something happens.
Having worked in private and public sector over the past 25 years I can honestly say I've personally reported my organisations to the ICO half a dozen times, yet never had approval from private companies to do so - even when the incident was arguably far, far worse. It comes down to money and lack of "give a toss" about data subjects.