I'm curious as to why you think they are proposing to knowingly squander £80,000,000
One, or a combination, of two reasons:
#1: To be able to claim to support active travel.
#2: Because they know active travel has value, but they're the, "I'm all for cycling, but cyclists can't be clogging up traffic" brigade.
Having had some small engagement with 'them' I reckon it's more likely that they just don't understand the concept of transport cycling.
Most politicians are, IMO, utterly clueless. (Like the Labour MP who said that the recent cyclist conviction should lead to sterner enforcement of "helmet laws.")
But the ones at the top have advisors. They can pick up a phone, ask a question, and get an informed answer.
And, for a question as simple as this one, it's hard to believe that they'd come up with a bunch of cockamamie schemes... to the point of announcing them... without someone pointing out the obvious answer.