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Referral of the proposed subsidy to the Canal & River Trust by the Department for Environment, Food and Rural Affairs

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).

From:
Competition and Markets Authority
Published:
6 October 2026
Case type:
SAU referral
Case state:
Open
Market sector:
Agriculture, environment and natural resources
Opened:
6 October 2026

Administrative timetable  

Date Action
16 November 2026 SAU’s report to be published
19 October 2026 Deadline for receipt of any third-party submissions
6 October 2026 Beginning of reporting period

Request from the Department for Environment, Food and Rural Affairs

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 SAU will prepare a report, which will provide an evaluation of Defra’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by the Department for Environment, Food and Rural Affairs 

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. As one of several UK navigation authorities, the CRT is responsible for maintaining and operating the waterway network including the upkeep of locks and bridges, dredging operations, water management and flood-related works. 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.   

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. The specific policy objective of the Subsidy is to: 

  • support the CRT’s waterway network infrastructure maintenance expenditure

  • through supporting maintenance, enable the CRT to ensure the safety of the public on and around the network and the navigability of the waterways in line with statutory obligations

  • through supporting maintenance, enable the CRT’s delivery of a wide range of associated public benefits (including, but not limited to, human health and wellbeing, recreational activities, active travel routes, green corridors for flora and fauna, biodiversity, and mitigation of flood risks)

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).

Information for third parties 

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the subsidy to the CRT please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.  

Please send your submissions to us at sau-defracrt2026@cma.gov.uk, copying the public authority: subsidyadviceunit@defra.gov.uk.   

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission 

The SAU will only take your submission into account if it can be shared with Defra. The SAU will send a copy of your submission to Defra together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with Defra using the email address provided above.  

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.  

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts  

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