Where Did It Go Wrong?

A decade after the 2008 financial crash, Britain's councils are once again having their budgets cut and Somerset, Norfolk and Lancashire county councils join the growing list of councils who are suffering 'financial stress' or in laymans terms, effectively bankrupt due to 'reducing levels of funding from central government'.
Northampton County Council have informed they can now only run a skeleton staff and do the bare minimum to keep functioning so why after ten years of austerity, is the UK bank account still in such a poor shape?
The massive bankers’ bailouts that were introduced following the collapse was paid for by ordinary taxpayers, who then saw their living standards plummet as governments imposed harsh austerity measures, which led to important public services being cut.
Following the 2010 General Election, the Conservatives held an emergency 'austerity budget' which we were told was going to 'rebuild the economy' and announced £17bn cuts in public spending, Royal Mail was privatised, a public sector wage freeze and a rise in the state pension age to 67.
Meanwhile, British workers suffered the biggest drop in real earnings since the Victorian age, 1.5 million people were pushed in poverty, 3.7 million to food banks and council spending on everyday necessities slashed.
Everywhere you look, we’re worse off than 10 years ago despite deep austerity and severe cuts so where has it gone so very, very wrong and why is it still getting worse?