The Subsidy Advice Unit (SAU) has accepted a request from the Department for Environment, Food and Rural Affairs (Defra) to review a proposed subsidy to the Canal & River Trust (CRT). The SAU will prepare a report evaluating Defra's assessment of whether the subsidy complies with control requirements.
Defra plans to award £401.2 million in grant funding to the CRT over a decade, from 2027 to 2037. This funding aims to support the CRT's maintenance of the inland waterways network while the trust reduces its reliance on government funding. The proposed agreement will start with a £49.99 million grant in 2027-2028, decreasing by 5% each year until 2036-2037, when it will be £31.51 million.
The CRT, established in 2012, manages approximately 2,000 miles of inland waterways across England and Wales. Its responsibilities include maintaining locks and bridges, dredging, water management, and flood-related works. The SAU is expected to complete its report within 30 working days.