Why build when you can borrow at the lowest rates for 400 years? If true the Treasury and UK govt really are utter morons, but then we know that. Better to fund infrastructure and long term investments at far higher borrowing costs, if done at all.
I don't think HM Government are "morons" or anything like it.
They are ideologically committed to austerity and certain other concepts like "network rail is deeply inefficient".
Not to suggest that there is any validity in network rail being inefficient, it is just that each party has its rhetorical position. When a government changes the new government immediately reverts to the natural rhetorical position last heard when they were last in office.
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I don't particularly dislike the idea of the MML electrification but the whole 'National Spine' south coast freight thing was a disaster, a political project that the freight industry itself said they wernt interested in and was a waste of money. I would be happy if that was sacrificed and the industry itself would be happy if the focus shifted to connecting important yards rather than trying to create a national route which they couldn't use because the last mile and freight lines remained unelectrified.
The "Electric Spine" thing never made sense since the major freight port is Felixstowe, not Southampton. Hence the freight requirements would be better served by electrification from Felixstowe to Nuneaton.
That is not to say MML electrification is a bad thing, just that the business case may not have been robust.+
Now
Network Rail is nationalised, we can expect HMG to exert more control over infrastructure projects and Network Rail generally.