According to this the UK economy fell by a quarter from 2007 to 2009. http://countryeconomy.com/gdp/uk This would indicate that since 2007 the UK has been in long term stagflation or depression.
I think that universal healthcare and welfare leads to long term stagflation. Think of where the US is headed with medical tyranny and military expenditures. The UK doesn't spend that much on it's military.
UK GDP took off in 2001 with cheap credit. Correction takes GDP growth back down to long term trendline. Money is still cheap but people are no longer borrowing like it was 2007.