Well my company fly the union jack every day, and they recieve no public funding. They always have flown the flag as far as I know, you can't see it as well now since they built the extension but it is still flown.
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I simply object to it being brought out whenever there is a footy tournament to see it being hung and flown from any old place....if the flag means that much, then treat it with the reverence it deserves.
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What is wrong with that tealeaf? In this day and age with the way life is, it is nice to see the country come together, so why not for football?
The way you speak of the UK/government/councils why would you ever want to fly the flag? If people want to do it to support the football team then so be it, I don't see many other reasons these days to get excited about being english.