Changes to boat licence fees

[Ray T]

CRT Press Release

 

2nd August 2022

 

CHANGES TO BOAT LICENCE FEES

 

In light of soaring inflation, which is impacting the costs required to keep the waterways safe and navigable, the Canal & River Trust is today announcing an inflationary rise of 4% in boat licence fees from 1 October 2022. This is in conjunction with cost saving measures that the Trust is taking and actions to increase income from other sources.

 

Whilst recognising that a second increase in fees this year is regrettable, the charity is facing significant increases in a range of its costs – 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 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 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 1 April. Consequently, boaters renewing their licences from 1 October 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 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. The Trust 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, 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 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%) 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.”

 

Boat licence fees rose by 4% in April 2022 and will rise by a further 4% from 1 October 2022 in response to the extraordinary increase in inflation rates. The Trust will keep the situation under active review whilst the economic conditions remain volatile and will agree its prices from April 2023 in November, continuing to seek to balance the impact on boaters with the pressure that the Trust’s finances are experiencing.

 

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. For more information visit: canalrivertrust.org.uk/enjoy-the-waterways/boating/do-you-know-a-vulnerable-boater

 

More information on boat licences is available here:  canalrivertrust.org.uk/enjoy-the-waterways/boating/buy-your-boat-licence/long-term-boat-licences

 

-ends-

 

For further media requests please contact:

Fran Read, Canal & River Trust

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

[Tonka]

1 minute ago, Ray T said:

CRT Press Release

 

2nd August 2022

 

CHANGES TO BOAT LICENCE FEES

 

In light of soaring inflation, which is impacting the costs required to keep the waterways safe and navigable, the Canal & River Trust is today announcing an inflationary rise of 4% in boat licence fees from 1 October 2022. This is in conjunction with cost saving measures that the Trust is taking and actions to increase income from other sources.

 

Whilst recognising that a second increase in fees this year is regrettable, the charity is facing significant increases in a range of its costs – 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 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 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 1 April. Consequently, boaters renewing their licences from 1 October 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 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. The Trust 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, 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 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%) 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.”

 

Boat licence fees rose by 4% in April 2022 and will rise by a further 4% from 1 October 2022 in response to the extraordinary increase in inflation rates. The Trust will keep the situation under active review whilst the economic conditions remain volatile and will agree its prices from April 2023 in November, continuing to seek to balance the impact on boaters with the pressure that the Trust’s finances are experiencing.

 

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. For more information visit: canalrivertrust.org.uk/enjoy-the-waterways/boating/do-you-know-a-vulnerable-boater

 

More information on boat licences is available here:  canalrivertrust.org.uk/enjoy-the-waterways/boating/buy-your-boat-licence/long-term-boat-licences

 

-ends-

 

For further media requests please contact:

Fran Read, Canal & River Trust

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

And due to lack of water there are 4% less canals to cruise on

[Alan de Enfield]

"

13 minutes ago, Ray T said:

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.

 

It is almost as if they were not aware that their DEFRA grant was to be 'fixed', and, that by now C&RT should be self-financing (according to their own plans) - maybe "less Chiefs and more Indians" could get the same work done at a lower cost.

 

"Boaters to pay more and get less"

[David Mack]

1 minute ago, Alan de Enfield said:

"

 

It is almost as if they were not aware that their DEFRA grant was to be 'fixed', and, that by now C&RT should be self-financing (according to their own plans) - maybe "less Chiefs and more Indians" could get the same work done at a lower cost.

 

"Boaters to pay more and get less"

Except we all know that was never going to stack up, even without the recent rise in inflation.

[Alan de Enfield]

Just now, David Mack said:

Except we all know that was never going to stack up, even without the recent rise in inflation.

 

The inflation rate is a surprise 'bonus' for many companies who have been marginally viable, there are ways to cut costs, increase your prices and start to show a profit again.

 

Just look at the recently released figures for the oil companies !

[MtB]

21 minutes ago, Alan de Enfield said:

"

 

It is almost as if they were not aware that their DEFRA grant was to be 'fixed', and, that by now C&RT should be self-financing (according to their own plans) - maybe "less Chiefs and more Indians" could get the same work done at a lower cost.

 

"Boaters to pay more and get less"

 

 

"Fewer", Shirley.

 

 

[Alan de Enfield]

2 minutes ago, MtB said:

 

 

"Fewer", Shirley.

 

 

 

 

You are of course entirely correct.

 

 

[Athy]

Thank goodness our licence is due for renewal in September!

[MtB]

1 minute ago, Alan de Enfield said:

 

 

You are of course entirely correct.

 

 

 

 

Getting even pickier, surely it should be "Fewer chiefs and the same number of Indians" could get the same work done at a lower cost.

 

[Alan de Enfield]

4 minutes ago, MtB said:

 

 

Getting even pickier, surely it should be "Fewer chiefs and the same number of Indians" could get the same work done at a lower cost.

 

 

Now you have gone too far.

Replace one 'Chief' on £75k with 2 Indians on £25k / £30k and still save and the Indians could actually go out and do some hands on maintenance work.

 

 

 

 

Edited August 2, 2022 by Alan de Enfield

[Rob-M]

14 minutes ago, Athy said:

Thank goodness our licence is due for renewal in September!

Unfortunately following the free month because of COVID ours falls in October now.

[Alan de Enfield]

13 minutes ago, Rob-M said:

Unfortunately following the free month because of COVID ours falls in October now.

 

Can you not renew it  up to a month early (like the BSS, etc)?

[Rob-M]

43 minutes ago, Alan de Enfield said:

 

Can you not renew it  up to a month early (like the BSS, etc)?

I'll have to check the licensing site to see when it becomes payable.

[frangar]

23 minutes ago, Rob-M said:

I'll have to check the licensing site to see when it becomes payable.

I’ve paid mine early before in the days when they sent out the licences….so I got them before we went boating….mind you they have an incentive not to let you pay early this time! 

[Naughty Cal]

I thought you could renew anytime in the month before your licence expires, much the same as VED.

 

We always renewed ours online and I'm sure we always did it a month early.

 

We do the same with the van VED which is due 1st April when the new vehicle tax rates apply. We always renew that as soon as the DVLA send the reminder so that we get it at the "old" rate.

[frangar]

I wonder how much fishing permits are going up?? Maybe it’s time to reintroduce paid for cycle permits??….or is it just easier to squeeze the boater a bit harder???

[Jen-in-Wellies]

3 hours ago, Alan de Enfield said:

"

 

It is almost as if they were not aware that their DEFRA grant was to be 'fixed', and, that by now C&RT should be self-financing (according to their own plans) - maybe "less Chiefs and more Indians" could get the same work done at a lower cost.

 

"Boaters to pay more and get less"

 

Could they try replacing the chiefs with volunteers?

 

[robtheplod]

Always amazed boat licenses only make up 12% of their income. I suppose it gives us an idea where boaters are in the pecking order though? 

[Arthur Marshall]

Bet they put up mooring fees too, though that'll be tricky to justify.

I'm sure I remember them proudly telling us how they were keeping rises to a minimum, just a year or two back.

[Alan de Enfield]

13 minutes ago, Arthur Marshall said:

Bet they put up mooring fees too, though that'll be tricky to justify.

I'm sure I remember them proudly telling us how they were keeping rises to a minimum, just a year or two back.

 

And they could still say they are, just 8.16% increase for those renewing in October, when inflation will be running at 11% by year-end.

[Hastings]

2 hours ago, frangar said:

I wonder how much fishing permits are going up?? Maybe it’s time to reintroduce paid for cycle permits??….or is it just easier to squeeze the boater a bit harder???

I think that I've still got my cycle permit somewhere.  It cost about 2/6 (old money).  Better use it now, in case they introduce a higher charge!

[Wanderer Vagabond]

5 minutes ago, Hastings said:

I think that I've still got my cycle permit somewhere.  It cost about 2/6 (old money).  Better use it now, in case they introduce a higher charge!

That must be old then, the last cycle permit I got was free and printed from the internet.

[Alan de Enfield]

5 minutes ago, Hastings said:

I think that I've still got my cycle permit somewhere.  It cost about 2/6 (old money).  Better use it now, in case they introduce a higher charge!

 

Unfortunately C&RT agreed in the transition documents that anyone could have free access to the towpaths and no charges would be levied on any members of the public.

[MtB]

3 hours ago, Rob-M said:

I'll have to check the licensing site to see when it becomes payable.

 

This 'free month' explains why when I renew my licences according to the reminders set up in the komputa, I keep finding I've done it a month early!

[frangar]

2 minutes ago, Alan de Enfield said:

 

Unfortunately C&RT agreed in the transition documents that anyone could have free access to the towpaths and no charges would be levied on any members of the public.

They agreed a lot of things. Doesn’t mean they keep to them.