A true reflection of UK plc?

[Jon_in_london]

From the Times:

http://business.timesonline.co.uk/article/0,,16849-1827488,00.html

The OECD’s analysis also suggested, however, that the problem goes beyond this. Its list of Britain’s supply-side failings pretty well cover the ground, including low levels of skills and education standards, “mediocre” innovation performance, poor productivity, poor value for money in government spending, a creaking and unreliable transport infrastructure and a failure to tackle unemployment that is disguised as incapacity.
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The bottom line is that, for all the recent success in controlling inflation and maintaining growth, Britain is uncompetitive, hence we have a permanent or “structural” trade imbalance. We do not make enough things people want to buy, but we will always want to buy things made in other countries.
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But even so, the annual deficit on goods is running at £60 billion, and on goods and services at more than £40 billion.

Sadly, I feel that this is indeed a grave reflection of the state of UK plc.

Most galling is that we have just come through a good time and are now heading into a bad time. The precious few taxpayers have been sorely pressed to improve the public services and infrastructure, yet despite all of these extra £100,000,000s, we still have third rate public services and a creaking infrastructure. The opportunity has been squadered and we are going to pay dearly for it.............

How can UK plc become more competetive? How can we start "making more things that other people want to buy"?