Britain's crisis is not just about investment, but also about upkeep. The recent fiasco over the accidental release of Hadush Kebatu highlights a deeper problem: the British state has built and continues to build, but struggles to maintain its services.
A decade of austerity has left public services on life support. Under the Conservative government, state spending grew by just 1% a year, significantly lower than the long-run trend of 2.6%. This hidden agenda of capital spending has sent ministers scrambling for cash, but failing to keep the essentials running. Investment without maintenance is decay – and Britain's public services are showing signs of irreversible damage.
The justice system, in particular, has been decimated under Tory austerity. Prison budgets were cut by a quarter, and staff numbers plummeted by 30%. The result is a "slow-motion collapse" of the service, as Cassia Rowland of the Institute for Government noted. The consequences are stark: 262 mistaken releases last year – more than double that in 2023 and quadruple that in 2014.
Ministers' proposed solution is to build more prisons, but this won't be enough. Where will the money come from to staff them properly? Even if additional jails are built, it's unlikely they'll solve the underlying problem of a system in disarray.
The Office for Budget Responsibility (OBR), once a bastion of austerity, seems to be shifting its stance. It has begun to recognize that public investment can pay for itself and is no longer assuming that there is no slack in the UK economy. In reality, investing in public services won't displace private spending; it will boost overall output.
The OBR's new perspective suggests a rethink of its earlier "cheeseparing" approach to fiscal policy. It's time for the government to invest in the essential services that underpin our society – not just throw money at short-term fixes or build more prisons without considering the long-term consequences.
Britain's productivity trap is partly due to a lack of investment and maintenance. The crash of 2008 saw firms stop spending, and uncertainty has kept them reluctant to start again. Since 2010, both public and private capital expenditure has stuttered – leaving Britain stuck in a low-productivity rut.
If the OBR can adapt its approach and take on a more proactive role, it could become a valuable tool for policymakers. It should quantify the cost of understaffed services, clogged hospitals, and councils that struggle to cope. The evidence is there – but it needs to be acknowledged and addressed.
A decade of austerity has left public services on life support. Under the Conservative government, state spending grew by just 1% a year, significantly lower than the long-run trend of 2.6%. This hidden agenda of capital spending has sent ministers scrambling for cash, but failing to keep the essentials running. Investment without maintenance is decay – and Britain's public services are showing signs of irreversible damage.
The justice system, in particular, has been decimated under Tory austerity. Prison budgets were cut by a quarter, and staff numbers plummeted by 30%. The result is a "slow-motion collapse" of the service, as Cassia Rowland of the Institute for Government noted. The consequences are stark: 262 mistaken releases last year – more than double that in 2023 and quadruple that in 2014.
Ministers' proposed solution is to build more prisons, but this won't be enough. Where will the money come from to staff them properly? Even if additional jails are built, it's unlikely they'll solve the underlying problem of a system in disarray.
The Office for Budget Responsibility (OBR), once a bastion of austerity, seems to be shifting its stance. It has begun to recognize that public investment can pay for itself and is no longer assuming that there is no slack in the UK economy. In reality, investing in public services won't displace private spending; it will boost overall output.
The OBR's new perspective suggests a rethink of its earlier "cheeseparing" approach to fiscal policy. It's time for the government to invest in the essential services that underpin our society – not just throw money at short-term fixes or build more prisons without considering the long-term consequences.
Britain's productivity trap is partly due to a lack of investment and maintenance. The crash of 2008 saw firms stop spending, and uncertainty has kept them reluctant to start again. Since 2010, both public and private capital expenditure has stuttered – leaving Britain stuck in a low-productivity rut.
If the OBR can adapt its approach and take on a more proactive role, it could become a valuable tool for policymakers. It should quantify the cost of understaffed services, clogged hospitals, and councils that struggle to cope. The evidence is there – but it needs to be acknowledged and addressed.
The UK's public service crisis has me thinking... they're not just low on cash, but also neglecting maintenance 
. I mean, it's like buying a car without checking the oil levels - it'll eventually break down 
. A decade of austerity was a big mistake; now they need to prioritize investment alongside upkeep 
. It's not just about throwing more money at things; it's about creating a system that works, with staff and resources in place to support services like justice and healthcare 
. The OBR finally seems to be waking up to this 
... now let's see if they can actually make some changes 
!
THE SYSTEM IS BROKEN AND IT'S TIME FOR A CHANGE 
not gonna happen 
they need to stop buildin new stuff and focus on fixin the old 
2.6% annual growth is way more realistic than 1% tho 
gotta acknowledge a decade of austerity took its toll 
hope OBR gets it together soon 
nope, that's just a symptom not the root cause. we need to talk about maintenance, upkeep, and prioritizing public services 
and what's the plan for staffing these new prisons? 
we need a long-term strategy here not just a quick fix. 
and btw, why did it take the OBR so long to change its stance? 
anyway, now that they're on board, let's get serious about investing in our public services 
not just throwing money around like confetti 
.
. They're like trying to build a house without a foundation, right? Public services are crumbling because they haven't been properly maintained for years, and now they just want to throw more money at it instead of fixing the problems first 
.
) [Image of a person holding a sign that says "Invest in maintenance, not just investment"] 
. I mean, who hasn't heard of a broken elevator or a bus that never shows up? 
.
. And the OBR finally seems to be waking up and realizing that investing in public services actually makes sense 
.
. The justice system is a good example - prisons are being built, but they're not enough to fix the problem of understaffing and lack of resources 
. We need a more proactive approach from the OBR, like quantifying the costs of underfunded services and taking a more proactive role in advising policymakers 
OMG, Britain's crisis goes way beyond just investment 
... and their public services are literally DYING 
! Like, 262 mistaken releases in one year? That's wild 
. And the justice system is like, totally broken 
! The OBR needs to come around and acknowledge that 
.
. Productivity is suffering because of this lack of investment 
. We can't keep living in a low-productivity rut 
! The OBR should be quantifying the costs of understaffed services, clogged hospitals, and struggling councils 
.
what's interesting though is that the OBR seems to be shifting its stance on public investment and fiscal policy... maybe this is a sign of things changing in britain 
its time for the government to get real about public spending and stop being so stingy