I have worked for at least three public sector organisations (depends how you count them as some have merged)! We've had re-organisation after re-organisation, each resulting in at least 90 redundancies. I've seen departments merge, whole organisations merge, jobs evaluated, regraded, or changed beyond recognition, new organisational structures created by expensive management consultants... you name it, they've tried it. Needless to say, most of the "nice to have" non-statutory services were cut years ago.
Many local authorities can no longer no longer make ends meet. Not due to financial mismanagement, but mainly because the model of social care funding simply doesn't work. Local authorities have complex statutory obligations regarding social services and the demand has increased enormously over the last few years (mainly due to an ageing population and an increase in those with complex care needs). Council incomes haven't increased by enough to cover this and selling their assets will merely buy them some time. I've also heard many anecdotes of family members being pressured to become full-time carers, even though this would force them to give up their own jobs and rely on Carer's Allowance.
The crisis in social care funding is impacting on the NHS, which was already struggling. Some of the waiting lists are unacceptable and in our area at least, urgent referrals for patients with suspected cancer are no longer on the "two-week-pathway" but a new "28-day-pathway". Also, our local hospital is in a poor state and has needed rebuilding for decades. Successive governments have agreed, but the money has never materialised.
I think we should have discussions about the kind of public services we want. For example, do we want the "Ryanair model" (as I heard proposed by management consultants), whereby taxes are low, and statutory services are extremely limited, but all "extras" are expensive and must be paid for privately? Or do we want the model of high tax but excellent public services favoured by the Nordic Countries?