We did use a fully qualified Civil Engineer - and it was pointed out that though "everything is possible" - there is a cost. Trouble is Group Standards etc are horribly difficult to challenge.
Excellent point on a "competition" fund for projects - trouble is Government puts these in , and then pulls them - the Rail Partneship Fund - which I sat on as a decision maker put in some excellent schemes (the very best being Norwich to Cambridge by Anglia) - and in your neck of the woods the Sunday service to Clithero (though Colne was pulled interestingly and the train diverted to the former.(not much use) - just as it was getting together nicely - the funding was cancelled for all new schemes. A great shame.
Yes, it was a very short sighted decision of Gmt to cancel it.
I've often thought that what's needed is a a modern day version of a "light railway order" to allow existing formations to be reused, particularly where those extensions are unlikely to become high speed main lines.