United Kingdom
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The ability to properly expel happened a few years before Osborne became chancellor, and the schools started shutting around then as well. Osbourne accelerated the process but hes not the initial architect of this problem.
Originally it was sold as every child is entitled to an education, and the very worst kids were not getting one. There have been subsequent judgements against LAs/Gov based around the 98 rights act, particularly A2P1 and there were cases before that as well.
You also had schools booting kids out around exam season just to improve their grade average, but like another over played boogeyman benefit scroungers the actual amount doing this was very low.
So austerity has made it worse, but it is not the cause of this problem.