Productivity in UK public services – what went wrong? What could go right?

The future success or lack of it, in raising UK public service productivity will have many consequences. Fundamental public outcomes are at stake because, as an outgoing Chief Secretary to the Treasury, Liam Byrne, put it in a letter to his successor - “I’m afraid there is no money.” The financial crisis played a major role in the UK reaching this position, as have political choices on deficit management. Since 1999/00, public expenditure has jumped from 36.3 per cent of GDP to 47.6 per cent in 2009/102. Of the two crucial areas of education and health, education’s share of GDP sharply expanded from 4.5 to 6.3 per cent, and spending on health soared from 5.2 to 8.4 per cent of GDP.