The government could raise taxes tommorow if they wanted to. The reason they not is quite simply there is no real need to for how they want to run the country.
Dont think you think its a sad state of affairs we only have a service sector, which is basically supermarkets, takeaways ,that sort of thing. A nation full of shopkeepers
A creative industry is and never will be a mass employer.
Ultimately if we didnt vie blueprints to chinese factories there wouldnt be a need to compete either, thats just simply companies getting greedy and wanting to cash in on the cheaper labour. Why the UK was viable for manufacturing in the 80s and before and suddenly not now is a question that should be raised, our wage inflation has been low since then compared to historical data.
If I owned a company that was able to make a profit using a uk workforce but then suddenly told me that if they dont go offshore they will go under I would be asking a lot of questions.