Dare I say this is why I am a trifle sceptical about renationalising the railways at the moment... the treasury would control the purse-strings. Whilst financial markets may be short-sighted, nothing is so short-sighted as the treasury. The railways have a good business case of booming passenger numbers, stable freight, a demand from operators for network improvements... The private sector I'm sure wouldn't be slashing upfront spending right now, they'd be investing. I am all too aware of the shortfalls of private ownership and though not a fan of half-measures think a part-privatisation could be a viable alternative.
Unless that's the plan, present an option of cuts or privatisation, which is less than ideal. I support public investment first and foremost, but privatisation if needs must.
Reduce MPs and ministers pay by 25% to 40% as well as their number.
At the risk of going off-topic, would that not be a false economy? There are already enough poorly written laws going through, constituents going unrepresented, etc. Democratic process is a tiny part of government expenditure, but has the huge potential to alter the country in ways good or bad. I'd therefore rather spend a little more to get it right.