Canal system locked out of more funding

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Canals face a “heartbreaking” threat thanks to cuts from the last Government, a local MP has said – although a minister told him that the well of Government funding had run dry.
Tim Roca, Labour MP for Macclesfield, made his comment in a Parliamentary debate on funding for the Peak Forest and Macclesfield canals.
Mr Roca, who grew up in Macclesfield, said both the Macclesfield and Peak Forest canals meant a lot to him, from walking his first dog down by the Peak Forest canal in Disley, “plugged into my Walkman and listening to the Spice Girls”, to using it today for rest and relaxation after a trying week in Westminster.
He said: “It matters to many of my constituents as well. The canals that run through our countryside add to the beauty of the area.”
He told MPs: “The Macclesfield canal is the first in the world to receive the coveted Green Flag award under the ministry of housing, communities and local government’s scheme to recognise and reward well-managed parks and green spaces.
“The award is judged on eight strict criteria, including environmental standards, cleanliness, sustainability and community involvement. It is no wonder that the Macclesfield canal has hit that high standard, especially considering the tireless hours that volunteers put into maintaining it. I pay tribute to the volunteers involved in maintaining our wonderful canals.
“The beauty of the canal is further enhanced by the impressive and historical buildings and places of interest located alongside it. I draw attention to those in my neck of the woods, including the Clarence and Adelphi mills in Bollington and the famous Hovis mill in Macclesfield.
“Our canals are not only beautiful green spaces; their significance as a network that provides jobs, homes, transportation and a thriving habitat for wildlife cannot be overestimated.”
But he said: “What is especially heartbreaking is the threat that our canals face because of the ongoing financial strain on the Canal and River Trust, which is a legacy of the last Conservative Government.
“Cuts to trust funding by 2027 will amount to more than £300 million. That is against a backdrop of mixed performance and some boater dissatisfaction with the trust.
“Boaters in my constituency have raised real concerns with me. They deserve to be treated fairly and to receive the services they need.”
He said the cuts meant that increase in the cost of boat licences and surcharges for those without a fixed home mooring risked a way of life that thousands had chosen.
He said: “Continuous cruisers often have the lowest incomes but are being asked to pay more. I am sympathetic, because the costs that the trust is passing on are a result of austerity.
“Sadly, as we have been discovering since the election in July, there are pressures across many aspects of public life that are a consequence of the inheritance from the last Government.”
Lisa Smart, the Liberal Democrat member for Hazel Grove, said: “The Peak Forest canal, one of Britain’s most scenic waterways, runs alongside the river Goyt for much of its length. The Macclesfield canal is a historic link between Manchester and the midlands. They are both jewels of our waterways. They are where they are because of the Stockport mills — notably Mellor mill, which was the largest cotton-spinning mill in the world in its time — and the Derbyshire quarries. We can still see that heritage along the canals, with Unity mill in Woodley, Romily board mill and Goyt mill in Marple.”
But she also warned: “Funding changes made by the previous Conservative government, which will mean cuts of 5% a year for 10 years, will drain nearly £300 million from the trust. Those reductions will undoubtedly undermine the trust’s ability to sustain the canal network. I fear that that will make the closure of those treasured public spaces sadly inevitable, unless something changes.”
She highlighted the cost of restoration project for Toddbrook reservoir, which supplies both the Peak Forest and Macclesfield canals.
“After a partial failure in 2019, the repairs came at a hefty cost of £15 million. Such massive efforts highlight just how vulnerable this vital infrastructure is,” she said.
She added: “Beyond their cultural and historical significance, the waterways are crucial for nature, for wellbeing and for combating climate change. They provide a vital habitat for wildlife and serve as a natural green corridor connecting diverse ecosystems that are bursting with biodiversity.
“Canals also play a really important role in water management, reducing flood risk and increasing climate resilience. Problems with reservoirs are problems for all of us.
“For health and wellbeing, canals offer an unparalleled sanctuary. Our waterways are freely accessible and provide opportunities for walking, cycling and relaxation in green spaces. At a time when public health concerns are high and when such spaces in urban and suburban areas are scarce, they deliver a cost-saving gift to the NHS. Research suggests that that gift amounts to more than £1 billion a year.”
Minister from the department for environment, food and rural affairs Mary Creagh said the Government funding was only part of the Canal and River Trust’s income.
She said: “The Canal and River Trust is endowed by the Government with a significant property and investment portfolio from British Waterways, which is now worth around £1 billion as a result of the trust’s sound management.
“To provide support and certainty for the trust, a 15-year grant totalling around £740 million was provided when the trust was set up. The grant was inflation-adjusted in the first 10 years and then fixed in the final five years. It is now set at £52.6 million a year until the grant ends in 2027, representing about a quarter of the trust’s annual income.
“Returns from the investment portfolio provide another quarter of the annual income, which means that the trust now successfully raises half its annual income from other sources.
“An important part of the transfer from British Waterways was an agreed objective that the trust would move progressively towards greater financial self-sufficiency and reduced reliance on public funding. With a reported increase of £12 million in total income last year over the previous year, the trust is already making good progress towards that objective.”
She added: “The Government is supportive of canal restoration generally to bring those benefits to even more people. Bringing canals back into active use contributes to the regeneration of areas that have been in decline.
“We have seen that in urban settings and in more rural areas, where there has been growth in local economies through increased tourism.
“However, although we are sympathetic towards the many restoration projects under way around the country, no general Government funding is available for canals. I pay tribute to the local volunteers who come out on a Sunday morning, do the litter picks and help with the restoration, because their commitment and general surveillance of canals is an important part of making them a safe space for everyone.”