UK public services waste billions while private sector moves forward
Latest data shows UK public service productivity dropped significantly since covid times‚ creating huge money waste. Private companies show better results while government services struggle with old-style management
The UK public sector faces a big-time productivity drop: its down 8.5% compared to pre-covid times (while inputs grew by 20% but output only increased by 10%)
Latest data from govt shows that public-service efficiency has been going down-hill for decades; its about 5% worse than it was back in late 90s. NHS England stats paint an even darker picture - hospitals work 11% less efficiently now than before covid
The money-side of this problem is huge: govt spends £453bn yearly on day-to-day public services (including health education and defence). If we fixed the productivity gap that opened since covid‚ wed save around £40bn - exactly what Rachel Reeves needs to fill her budget hole
Measuring public service output isnt simple; you cant just count money like in business. Instead they look at things like:
- GP appointments done
- School teaching hours
- Court cases processed
- Defence activities completed
Health and education drag down the numbers most - these face-to-face jobs (like teachers with class-size limits) make it hard to boost productivity. But private sector shows itʼs possible: retail and pro services got 10%+ better since 90s
The main issues behind this mess are clear - no real competition exists; everything depends on Treasury money-decisions; union membership is high (especially with doctor groups being non-flexible); and new tech adoption is super-slow. The NHS needs the biggest fix: UK now has worst life expectancy in Western Europe despite similar spending
At least Wes Streeting and the new govt team say theyre ready to tackle these problems - but time will tell if they can make real change happen
