What would have happened to British rail ITTL? Thatcher was not exactly a fan of the railways and this was during a time when BR where in desperate need of funding. Thanks to the construction of the Channel tunnel in the early 80s Britain’s industries gained direct access to the continent which helped keep BR a float until sectarisation in the late 80s. Today our rail network is the best in Europe because of this and under a Thatcher government i doubt such a large rail project such would have been given the go ahead.
Hmm, hard to say, but I'm inclined to agree, if only because - as you said - BR by the 1980's was in dire need of funding, but more importantly, massive upgrading and modernisation.
But then this was true of just about the whole of the UK Industrial Sector...
I have a rather different question though.
What do you think would've been the case concerning the UK itself? As in the UK as an entity? Had Thatcher become PM?
IIRC Independence Movements (SNP being a quite obvious example) saw quite a surge during the 1970's - as the economy reeled from Stagflation - but it seems to me that it's kinda petered out since. But had the worst predictions of Laissez-Faire come to pass - or even if just some of it - could this have been enough to give them the boost they needed to properly break through? Combined with the lack of regional governments?*
And speaking of Europe (and the EU), yeah, even under Thatcher, I can't see the UK going all in, under any scenario. In fact, IIRC, the country seems happy enough with our current Economic Union arrangements, and nothing more.**
* - When you think about it, this was actually quite a smart move. The semi-federalist design (as I see it) we have at this time has actually been something of a boon to Labour and the Alliance Party - and even helped the Conservative Party remain somewhat relevant in places. By associating themselves with handing Power down closer to the People, nipping Independence Movements in the bud, and (oddly enough) going quite some way to keeping the Union intact.
** - OOC: Think Norway IOTL