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Boat licence fees for 2020-21


Ray T

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PRESS RELEASE

 

31 October 2019  

 

BOAT LICENCE FEES FOR 2020-21

 

The Canal & River Trust is today announcing that headline private and business boat licence fees will rise by 2.5% from 1 April 2020.

 

As previously announced, in March 2018, following the Trust’s national boat licence consultation, a number of changes will be made to licence fees over five years. 

 

From 1 April 2020, a 2.5% ‘prompt payment’ discount (reduced from 5%) will apply for those who pay on time in full, and a new 2.5% discount will apply for those who manage their payments online including, for the first time, for boaters paying by direct debit.  This means that boaters who may not be able to afford to pay in one lump sum will also be able to benefit from a small discount on the full licence fee.

 

In addition to the current length-based pricing, from April 2020 the Trust will start the phased introduction of additional pricing bands for boat widths over 2.16m (7ft 1”), as announced in March 2018, with a surcharge of 5% applied until March 2021 (when it will increase to 10%).  This means that boats over 2.16m wide will be subject to an increase in licence fees of 7.6% overall from 1 April 2020.

 

Jon Horsfall, head of customer service support at Canal & River Trust, said: “Income from private boat licences accounted for around 10% of our annual income last year, and helps ensure that we can carry out the vast amount of work needed to keep the waterways available to boaters.   

 

“We know that not every boater is in a position to pay their licence in a single payment so we’re pleased to be able to extend a portion of the previous ‘prompt payment’ discount to those paying by direct debit, as well as all those managing their payments online.  We’d encourage boaters to sign up to online licensing to benefit from the 2.5% discount.

 

“The changes we’re making to boat licensing are intended to ensure the financial contribution made by boaters towards the cost of looking after the waterways is spread fairly across the boating community.  We are staggering the changes for wider vessels that we announced last year over a five-year period from 1 April 2020 so there’s no sudden impact on any boaters.”

 

More information on boat licences is available here:  https://canalrivertrust.org.uk/enjoy-the-waterways/boating/buy-your-boat-licence/choosing-and-buying-your-licence

 

The Trust has published a Boater Report showing how the charity uses income from boating, and other sources, to maintain the canals and rivers for navigation:  https://canalrivertrust.org.uk/enjoy-the-waterways/boating/boating-blogs-and-features/boater-report

 

-ends-

 

For further media requests please contact:

Fran Read, Canal & River Trust

m 07796 610427 e fran.read@canalrivertrust.org.uk 

 

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5 minutes ago, Athy said:

Fatties: CART puts boot in.

 

I'm not sure that adding 5% - 10% (£100 ?) to the licence fee is going to mean much to those with £250,000+ boats.

Far better to increase the NB licence fees, as they are the main users of the system causing the majority of wear & tear, "Fatties" seem to move much less so don't use as much water, or open/close locks gates so frequently.

 

 

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33 minutes ago, Alan de Enfield said:

I'm not sure that adding 5% - 10% (£100 ?) to the licence fee is going to mean much to those with £250,000+ boats.

Far better to increase the NB licence fees, as they are the main users of the system causing the majority of wear & tear, "Fatties" seem to move much less so don't use as much water, or open/close locks gates so frequently.

 

 

An interesting viewpoint. Er, NB licence fees ARE being increased!

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2 hours ago, Alan de Enfield said:

I'm not sure that adding 5% - 10% (£100 ?) to the licence fee is going to mean much to those with £250,000+ boats.

Far better to increase the NB licence fees, as they are the main users of the system causing the majority of wear & tear, "Fatties" seem to move much less so don't use as much water, or open/close locks gates so frequently.

 

 

I don't think that's quite correct, surely a fat boat in a lock uses the same amount of water as 2 narrowboats in together.

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1 hour ago, Flyboy said:

I don't think that's quite correct, surely a fat boat in a lock uses the same amount of water as 2 narrowboats in together.

You do know that this comment will get pulled apart by the Negative Aqua Flow Foundation dont you.

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Am I reading this correctly. I currently pay in one go and get the prompt payment discount. But from next year I might as well pay monthly by direct debit and get the same discount ?  I’d say that’s an own goal by CRT. Clearly they have no financial acumen at all ....

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5 minutes ago, jonathanA said:

Am I reading this correctly. I currently pay in one go and get the prompt payment discount. But from next year I might as well pay monthly by direct debit and get the same discount ?  I’d say that’s an own goal by CRT. Clearly they have no financial acumen at all ....

In the 'old days' they could put the money "paid in advance" into the bank and it would earn some interest - worth giving a little discount.

These days there is 'no interest' worth speaking of so it may as well be left with the boat owner. Once a Direct Debit is set up there is no additional cost in administering it.

 

 

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Just now, Alan de Enfield said:

In the 'old days' they could put the money "paid in advance" into the bank and it would earn some interest - worth giving a little discount.

These days there is 'no interest' worth speaking of so it may as well be left with the boat owner. Once a Direct Debit is set up there is no additional cost in administering it.

 

 

I think the main thing is to get the money on time without further expense 

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12 minutes ago, Alan de Enfield said:

In the 'old days' they could put the money "paid in advance" into the bank and it would earn some interest - worth giving a little discount.

These days there is 'no interest' worth speaking of so it may as well be left with the boat owner. Once a Direct Debit is set up there is no additional cost in administering it.

 

 

There is no interest in savings but try borrowing money....  there is something called cost of cash and net present value.

 

i will simply stop paying in one lump sum online and switch to direct debit monthly that’s a gain for me and a significant loss to CRT as any accountant will tell you 

 

to be fair I’ve not looked at CRTs finances so maybe they are awash with cash in which case it’s no big deal for them but still worth while to me.....

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4 minutes ago, jonathanA said:

There is no interest in savings but try borrowing money....  there is something called cost of cash and net present value.

 

i will simply stop paying in one lump sum online and switch to direct debit monthly that’s a gain for me and a significant loss to CRT as any accountant will tell you 

 

to be fair I’ve not looked at CRTs finances so maybe they are awash with cash in which case it’s no big deal for them but still worth while to me.....

I agree, I'll be doing the same. 

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48 minutes ago, jonathanA said:

i will simply stop paying in one lump sum online and switch to direct debit monthly that’s a gain for me and a significant loss to CRT as any accountant will tell you 

You need a different  accountant! 

 

Have you never wondered why all the chuggers want a DD rather than a one off sum?  Why the charity adverts are after £3 a month in preference to a £40 donation?  Why new car leases are all £200 per month rather than £30,000 cash?

 

Guaranteed cashflow over the next 12 months is worth more to the money markets than a year's worth of cash up front. 

 

The world has moved on to the point that it's now usually a surcharge for cash, not a discount!

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9 hours ago, jonathanA said:

Am I reading this correctly. I currently pay in one go and get the prompt payment discount. But from next year I might as well pay monthly by direct debit and get the same discount ?  I’d say that’s an own goal by CRT. Clearly they have no financial acumen at all ....

Is that the case, I was reading it that you get a discount for prompt payment and a separate discount for managing online.  Therefore if you want to use direct debit you can now do that online and get some discount (where you had no discount before), but you would not get the prompt payment discount.  Personally I would say even at only 2.5% you are better off paying in one go rather than keeping the money in the bank as you are not likely to be getting better than 2.5% interest on the money.  Giving a discount for managing online seems to make a lot of sense as handling payments over the phone is what is costing CRT the money.

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