As many have stated it was a leftover from the DC era which were based on local supply set-up's. Each area, town, city in those days chose the system they wanted or could afford, nothing was standardised, ...that came later. So the rough reasoning behind Neutral fusing is pretty much how Tony has described above, a bit more to it than that, but good enough.
Even when the supply changed to AC electrical installations were pretty crude or basic to say the least especially for domestics, where it was mainly a lighting installation with perhaps one or two (if you were lucky) socket outlets per house or apartment/flat. It took a time for the industry to get used to the AC supply systems and rewrite the Regs of the time to accommodate and eventually standardise.
Some local regional electricity boards were still installing fused neutral cut outs some 15 to 20 or so years after the general AC changeover was completed...[/QUOTE]
They probably had warehouses stuffed full of the things and needed to get rid of them!