Boat licence fees to rise on October 1
THE Canal & River Trust has announced an inflationary rise of 4% in boat licence fees from October 1, 2022.
This is in conjunction with costsaving measures and actions to increase income from other sources.
Chief executive Richard Parry said: “This has been a very difficult decision for the trust. We recognise that our boating customers will be feeling the effect of inflation across their personal finances and a mid-year price increase will not be welcomed. But we are compelled to take steps to reduce the budget shortfall we now face, with our Government grant frozen since 2021 and with the combined 2022 licence fee increases remaining lower than the current inflation rate.
“We will do all we can to support boaters who may be struggling with the cost-of-living crisis and urge them to contact our boat licensing team so we can agree how we can help them.”
While recognising that a second increase in fees this year is regrettable, the trust is facing significant increases in a range of its costs. These are notably the prices of energy, fuel, materials and other construction costs which are rising by more than headline consumer inflation rates, leading to a projected shortfall in the trust’s finances.
Additionally, the government grant payment – which goes towards the cost of maintaining the waterways – is frozen this year (and hence declining in real terms) and until 2027.
Unless measures are taken urgently by the trust to address its budget gap this year, its priority works could be significantly affected.
The rise follows the earlier increase in fees, also 4%, from April 1.
Consequently, boaters renewing their licences from October 1 will face a combined 8% increase. This will still be some way below current inflation of 9.4% and predicted to rise further.
When the earlier 4% increase in boat licence fees was agreed in October 2021, UK inflation (CPI) was 3.1%, with some short-term increase predicted but nothing close to current sustained rates of inflation.
In order to reduce spending, the trust is scaling back on non-essential works and focusing on those which are required legally or which support navigation. While this winter will necessarily see a number of planned works deferred, CRT will still deliver one of its largest programmes of repairs and maintenance to date.
Richard added: “We continue to prioritise our work to maintain and repair the historic canals and river navigations in our care, doing what we can to reduce spending in other areas and to generate income from other sources where possible.”
The trust will keep the situation under active review while the economic conditions remain volatile and will agree its prices from April 2023 in November.
Support for boaters who may be struggling to pay their licence fees will be considered on a case-by-case basis. This may include arranging flexible payment plans and signposting to relevant services, for example the Waterways Chaplaincy, local authorities and Citizens Advice. For more information visit: www.canalrivertrust.org.uk