UK boat licence fees on the rise

The Canal & River Trust has announced that in light of inflation, which is ‘impacting the costs required to keep the waterways safe and navigable’, boat licence fees will increase by 4 per cent from 1 October 2022.

The rise follows the earlier increase in fees, also 4 per cent, from 1 April. Consequently, boaters renewing their licences from 1 October will face a combined 8 per cent increase. This will still be some way below current inflation of 9.4 per cent and predicted to rise further. When the earlier 4 per cent increase in boat licence fees was agreed in October 2021, UK inflation (CPI) was 3.1 per cent, with some short-term increase predicted but nothing close to current sustained rates of inflation.

The charity says it is facing significant increases in costs such as energy prices, fuel, materials and other construction costs, which are rising by more than headline consumer inflation rates. This is set to lead to a projected shortfall in the trust’s finances as costs outstrip budget projections and are forecast to exceed the charity’s income.

Additionally, the government grant payment – which goes towards the cost of maintaining the waterways – is frozen until 2027. Unless measures are taken urgently by the charity to address its budget gap this year, the Canal and River Trust says its priority works could be significantly effected.

In order to reduce spending, the charity is scaling back on non-essential works and focusing on those which are required legally or which support navigation. Whilst this winter will necessarily see a number of planned works deferred, the Trust will still deliver one of its largest programmes of repairs and maintenance to date.

According to the charity, it is also making cost-saving cuts more generally across the business and scaling back any discretionary activities; however the asset repair works are the predominant use of the charity’s funds, above the day-to-day cost of keeping the network open. In parallel, the trust is seeking to maximise revenue from its other income streams.

Richard Parry, chief executive at Canal & River Trust, says: “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 the highest levels of inflation in 40 years cannot be ignored and 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 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.

“Boat licences account for around an eighth (12 per cent) of the charity’s annual income and help ensure that the vast amount of work necessary to keep the waterways available to boaters can be carried out. 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.”

The Trust says it will keep the situation under active review whilst the economic conditions remain volatile and will agree its prices from April 2023 in November.

The Trust will continue to support boaters who may be struggling to pay their licence fees 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.