Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what assessment they have made of the likely impact of their long-term funding settlement for the Canal & River Trust on the condition and safety of the canal network.

The Government recognises that canals provide many public benefits, including social value to people and communities. When the Canal and River Trust was set up in 2012 to replace British Waterways, the Government agreed to provide an annual grant over 15 years to provide a measure of financial stability while the Trust developed alternative income streams. This was on the clear understanding, set out in the Memorandum of Understanding signed between Defra and the Trust at the time, that the Trust would progressively reduce reliance on Government grant funding. During this 15-year period the total value of the grant payments will be around £740 million. The Government also transferred a property portfolio, generating around £50 million per annum and now worth around £1 billion, to support their costs.

Following a comprehensive evidence-based review of the grant that included consideration of the public benefits provided by canals, and while there was no obligation to do so, the Government has agreed to provide the Trust with a further £400 million grant over ten years from 2027 to support their continued efforts towards providing public benefits and delivering a safe and resilient canal network. This is consistent with the original strategic intent for the Canal & River Trust to reduce dependence on taxpayer funding as an independent charity.