The UK Department for Environment, Food and Rural Affairs has referred a proposed £401.2 million subsidy to the Canal & River Trust to the Subsidy Advice Unit for evaluation, with a report due by November 16, 2026.
Why it matters. The evaluation will determine if the subsidy complies with subsidy control requirements, potentially impacting the Canal & River Trust’s funding and operations.
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Environment, Food and Rural Affairs (Defra) concerning its proposed subsidy to the Canal & River Trust (the CRT).
6 October 2026: The SAU has accepted a request for a report from Defra concerning the proposed subsidy to the CRT.
The CRT as established as a charitable organization in 2012 to succeed British Waterways and assume responsibility for the management of around 2,000 miles of inland waterways across England and Wales.
6 October 2026: The SAU has accepted a request for a report from Defra concerning the proposed subsidy to the CRT.
6 October 2026: The SAU has accepted a request for a report from Defra concerning the proposed subsidy to the CRT. This request relates to a Subsidy of Particular Interest.
The total amount of the proposed subsidy is £401.2 million, with payments to be made over the period 2027 to 2037.
The proposed agreement will begin in 2027 and end in 2037, starting with a grant of £49.99 million in 2027 to 2028, and tapering downwards by 5% in each subsequent year (the grant award for 2036 to 2037 will therefore be £31.51 million in nominal terms).
Defra is proposing to award a subsidy in the form of grant funding to the CRT to support their work in maintaining the inland waterways network while it reduces its reliance on government funding.
16 November 2026 | SAU’s report to be published |
19 October 2026 | Deadline for receipt of any third-party submissions |
The CRT has around 1,600 employees across England and Wales and is also supported by volunteers who undertake a wide variety of activities on the waterway network including lock operation, towpath clean-ups and minor maintenance.
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Environment, Food and Rural Affairs (Defra) concerning its proposed subsidy to the Canal & River Trust (the CRT).
tapering downwards by 5% in each subsequent year (the grant award for 2036 to 2037 will therefore be £31.51 million in nominal terms).
