So where's the issue then? Obviously the airfield needs AFIS and some coordination with ATC
It works because your ATC is taxpayer funded
Every other country that has some notable GA activity will have sorted out the issue one way or another.
Yes, but none of them has privatised ATC like the UK has.
It's true that when the CAA drew up the obligations for ATC to deliver, prior to privatisation, they could have put in stuff like approach controller provision for GA.
But they didn't.
Perhaps somebody thought of it but the merchant bankers advising would have resisted such an obligation as it would reduce the proceeds from the IPO. So the only obligations were what ICAO demands i.e. a FIS and some other bits.