The Tories are almost exclusively responsible for that. With education and long-term industrial policy, there could have been an enormous high-tech manufacturing sector underpinned by an educated workforce to replace the older primary industries like coal mining and "low secondary" like bulk steel.
These policies should have started in the early 80s, but instead at that time they started slashing and selling.
Germany has a lot of faults policy-wise, but they somehow managed to keep manufacturing despite spending trillions on reunification right in middle.