Started this reply hours ago and had to go away and do something else for a bit...
I heard a statistic like that recently too, Rhiannon, and it is very misleading...it's based on one of those economists' statistics like GDP or GNP, which are severely weighted by the strength of the pound. If we went into the euro our international ranking would plummet. In most tables where quality of life is a factor we come way down - barely in the top 20 usually.
The train system is rubbish - from what I read! (I am so glad I don't have to use it.) NI has been increased as a form of income tax - very sneaky.
However, the NHS - IMO - is a lot better now, in many ways, than when I first used it regularly, 17 years ago. I think it is understaffed (I couldn't believe what I heard on the news tonight, that there are now 20,000 more nurses than a couple of years ago) but the buildings and appointments systems etc are much better. And the food is edible!
And education is at least better funded than 5-10 years ago, and the numeracy/literacy hours are making a difference.
As fot the underground - I lived in London 20+ years ago, and had hardly been back until last winter, but I was actually quite impressed with the bits we saw - possibly the best bits!
I do think privatisation is responsible for a lot of the problems, especially in transport; but the increase in competition does appear to have benefitted us in things like telephone services and other utilities...
I agree with Sobernow about trying to bring up our own children to treat others "as they would be done by" - there's really nothing more we can do. I know what Bugsy means about feeling her quality of life going down the toilet - Bugsy, a wild guess, do you live in London? - but I think we just have to try to look out for positive things and ignore the crap - we can't do much to change it...