Chancellor's Budget statement - Rail

This from the Chancellor's Budget statement today...

I confirm today that Network Rail will extend the Northern Hub, adding to the electrification of the transpennine rail route, by upgrading the Hope Valley line between Manchester and Sheffield – and improving the Manchester to Preston and Blackpool, and Manchester to Bradford lines.

NR's Northern Hub twitter account, @NetworkRailNH, said:

#NorthernHub has been given £130m in today's Budget for three parts of the project - improving journey times and increasing capacity

And confirmed that the Hope Valley line will be:

Upgraded - extra track and platform at Dore, loop at Dore/Grindleford, capacity at Chinley, also line speeds.

Despite the Chancellor's ambiguous words no mention of electrification.

And, alas, no announcement of wires for the Midland Main Line either.

UPDATE: This from Captain Deltic...

So, @NetworkRailNH, said: #NorthernHub has been given £130m in today's Budget for three parts of the project - improving journey times and increasing capacity

Good grief, if Network Rail doesn't understand how the privatised railway works we really are in trouble.

The Government doesn't 'give' money for NR investment. It authorises NR to borrow the money to pay for the upgrade the value of which is then added to the Regulatory Asset Base where it then earns a return which is added to NR's agreed income determined by the Regulator much of which comes from the Direct Grant paid to NR by DfT.

In other words the Budget committed to paying the interest on the borrowing to fund the extra Northern Hub work on the 'never-never'.

(Shakes head in disbelief and goes back to writing about the last days of Railtrack where there was similar naivete).

UPDATE: This from NR's Internet Rapid(ish) Rebuttal Unit...

Of course we understand how RAB funding of projects works at Network Rail.

What we wanted to do yesterday is amplify the great news about the Northern Hub via Twitter.

Here's a challenge for you (and indeed other Railway Eye readers):

Using 140 characters or fewer, explain RAB funded-projects and permitted rate of return funded by network grant as agreed by the regulator.