Your post reads as if the previous government is still in place and no election has occurred. "The government" that made all those decisions about XC for 14 years is no longer "The Government". The previous government, when it nationalised franchises, did so only when forced, as a last resort, and had no incentive to show how well the state could run a service since its objective, as formerly set out in the law, was to return them to the private sector. The new government has abolished that requirement and has every incentive to make a success of state run railways, if it is to have something to show off at the next election.
Yes, of course it's true that there is no guarantee that the new government will make better decisions, and also true that the financial situation will remain tight, but it seems very premature to just assume that every decision the new government makes will be exactly along the same lines as the previous one. In fact, within the financial constraints set, it appears to me that many of the priorities will be set by one person, Peter Hendy, so a lot seems to ride on his competence and ability to make changes.
Personally I will wait until GBR takes shape before making any judgements. And in the meantime, blaming "The Government", as in the present one, for the current state of XC seems misdirected.