Goals from Jesse Lingard and Harry Kane cancelled out Andrej Kramaric's effort, relegating Croatia in the process and putting more gloss on Gareth Southgate's growing England CV.
"There's no shortcut for England to get back to where they were in the summer, they have to go step by step and grow all the way to the next tournament, and this is a big moment today," Neville said.
"The disappointment of the summer carries over, but to recover and play those games against Spain and Croatia, and to come back and win the group is a great team effort and it tells you a lot about the spirit of the team.
"We could have been 2-0 up at half-time, but it had a lot of the same patterns as the summer, in terms of them hanging in there, showing resilience, then getting a goal, then getting stronger, but this time we bit back, and that's the development.
"Gareth will be thinking where did the game change; we actually came back at them and were able to finish stronger."
Neville went on to say how good it was to finally seen and England team that is competing and enjoying its football: "For so long there has been doom and gloom and low expectation.
"Getting carried away with England is not such a bad thing considering where we have been for the last 15-20 years.
"There has always been high expectation and then disappointment. There was low expectation going into the summer and now we are achieving things."