It's a fairly common refrain that one of the problems with public service provision is that people in the UK want European levels of service while paying US levels of taxation. Having spent some time in both the EU and the US this year, however, I'd submit that the UK is in a uniquely crap position, and further that the problem is not where received wisdom would have it.
The thing is, in the US public services are a lot more limited than they are here: the government simply does less for people. And that means that the cost of living is higher. (There are other flaws in the system, and the roulette wheel of being bankrupted by a medical emergency is particularly horrible. I don't advocate copying their system whole cloth.) However, tax rates are correspondingly lower in the US than they are here.
However, one big difference in the US is that while tax rates are lower, tax revenues are higher, because average wages in the US are much higher than they are here. 10% of $100,000 is rather more than 20% of £30,000!
The net effect of this is that while the government does less for people, the things that it actually does are individually much better funded.
Conversely, in the EU public services are much more extensive, and tax rates are correspondingly higher to pay for them. The trade-off here is that because public services are extensive and well funded, there's no need, or indeed scope for, things like private education or healthcare. The cost of living, therefore, with the notable exception of taxes, is much lower.
But, again, there's one big difference: average wages are higher, meaning that although the tax rate is higher, the amount of money left over is also correspondingly higher - 50% of €70,000 is rather more than 80% of £30,000!
(This also means that for a UK citizen, travelling abroad becomes horribly expensive - when going to the US there's a need for comprehensive, and therefore expensive, insurances; when travelling to the EU anything you buy, and of course accommodation, is much more expensive due to the taxes involved.)
There are, as far as I can see, two fundamental problems with the provision of public services in the UK:
- Wages are, fundamentally, too low across the board. And, indeed, we seem to have set up our system to discourage people to seek better - the income gap between someone on benefits versus someone on the minimum wage just isn't high enough to justify the time and effort required to get and keep that job, and then at each step up the latter the salary increase is too small compared with the additional time, effort, and stress required. Our economy has been too stagnant for too long, and the jobs ladder has become to compressed.
- Those providing public services are also trying to do too much with just too little money, with the effect that every service people actually interact with is desperately creaking.
And it's going to get worse before it gets better, because our councils (primarily) are almost all desperately struggling under impossible debt repayments and pension commitments, while simultaneously trying to deliver too many services with not enough money. Meaning that year on year they'll have to increase Council Tax as much as they think they can get away with while at the same time degrading every service they are delivering.
There isn't really a solution to much of this. Wage increases are a key driver of inflation, meaning that increasing them will just cause more pain for anyone who doesn't get them, and the notion of councils doing less has the recipients throwing their hands up in horror (and with good reason). So, basically we're just stuck.
And yet, I rather suspect that is exactly what is needed. Well... that and central government clearing the debts incurred by councils, so that they actually have some room to maneuver...