The problem here is self inflicted, really.
We keep voting for the governments who will spend the most, who will put the most billions into various schemes, inflating the size of the public sector year on year with absolutely no let-up until very recently. The Great British Pleblic get a raging boner when politicians talk about pumping NHS spending by 10 gazailobillion.
But the problem is, when you flood a relatively less accountable and poorly managed sector (ie who operate on an essentially 'spend it or lose' budgetary policy) with new money, what are they going to do? What are they going to do if you force them to spend their budgets or find their budgets reduced the next year? They're going to spend it asap, of course - including paying themselves more and hire or promote their friends into higher paying positions, and get lazy with procurement.