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Hypothetical - what would you spend it on?

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Irascible

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Aberystwyth to Carmarthen as a metre guage electric railway?
That'd certainly make the infrastructure costs of electrification less, assuming the loading gauge inc overhead fits inside whatever standard gauge envelope was used... also that does sound an attractive thing to use. Would probably need so much subsidy you might as well not bother with ticketing, but still attractive to ride!

We need new build passenger suggestions other than Moorgate-Bank? then OOC ( connecting fully to HS2 ) -Southampton-Bournemouth-Exeter-Plymouth UIC gauge. Doesn't have to be full HSR linespeeds but other than dodging some tunnels the costs are apparently similar to full HSR anyway. Let's make sure to build in sufficient loops of sufficient length for a little freight & some Javelin-esque south coast services.

Unfortunately that leaves out Bristol & S. Wales, I'm not sure where to route a new line there honestly - do you send it to OOC or Birmingham or somewhere in the middle like Milton Keynes? or somewhere between S'hampton & OOC? hmm.
 

Bletchleyite

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If we're allowed tramways, I'd implement them in as many primarily bus-served cities as the funding allowed. First priority probably Leeds, second Bristol.
 

Purple Orange

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If we're allowed tramways, I'd implement them in as many primarily bus-served cities as the funding allowed. First priority probably Leeds, second Bristol.

Hear hear. The key piece is kick starting a network rather than building a full network in one go. For instance Sheffield probably has a far greater chance of getting a new tram line than Leeds does.

Cities need metro networks and these can be achieved via a tram network through to metro light rail and a full heavy rail underground system. Therefore whatever network a city requires, I’d use the £16bn to build the first line. The second and third lines will come in time as the business case becomes far more robust.
 

NoRoute

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With my fantasy £16 Bn I'd create an M1 rail route, by building a number of infill sections of new and rebuilt track along with a few stations to link the WCML and Midland to create an M1 train service, a reasonably direct rail route connecting all the major cities and towns along the M1 motorway, combining parts of the WCML and Midland into a new route.

Starting at St Pancras using the MML upto Luton, then at the northern end of Luton where the MML runs alongside the M1 a new section of track over to the WCML south of Bletchley, follow the WCML through Milton Keynes upto Northampton then to get to Leicester, either reopen the Northampton to Market Harborough or, take the slow lines upto Crick, then a new line following the A5, under/over the M6, then drop onto the old GCML route along the M1, through Lutterworth with an M1 Parkway station, into Leicester. MML upto Nottingham but take the Erewash valley line.

On the edge of Nottingham, south of Long Eaton I'd rebuild the long demolished 'Trent Station', branding it as 'Derby-Nottingham Interchange' allowing trains a convenient interchange between North-South services and Derby to Nottingham local services. New M1 Parkway at Trowel, MML upto Chesterfield, Sheffield, Barnsley, Wakefield Westgate with a new curve, then onto Leeds.

Possibly a couple more strategically placed M1 Parkway stations.
 
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