TOFO,
The problematic point is that the Blair and Brown governments attempted to have European public services at low, US-style taxes. Worse, they allowed the tax base to become very reliant on narrow taxes on corporate profits and stamp duty. When these revenues collapsed, the result was an 11% deficit and spiralling debt - the bank bailouts didn't help, but wasn't the primary cause.
Ultimately, if the British people want improved public services then they need to pay higher taxes; for the same taxes, services will shrink significantly.
S41