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United KingdomGOV.UK

£401m Canal & River Trust grant faces subsidy review, comments by 19 Oct

Defra's proposed £401.2m grant to the Canal & River Trust faces Subsidy Advice Unit review, with third-party comments due by 19 October 2026.

By Taxxa AI OyPublished 6 October 2026

Public Sector & Economy

The Subsidy Advice Unit has accepted Defra's request for a report on a proposed £401.2 million grant to the Canal & River TrustGOV, opening a short window for third parties to comment on whether the subsidy complies with the subsidy control requirements.

The referral, accepted on 6 October 2026, concerns a Subsidy of Particular InterestGOV: a public authority must request a report from the Competition and Markets Authority before giving a subsidy of particular interest, under section 52 of the Subsidy Control Act 2022Legislation. The Unit will evaluate Defra's assessment of compliance and complete its report within 30 working daysGOV.

The proposed subsidy is grant funding to the Trust, the charitable body established in 2012 to succeed British Waterways and manage around 2,000 miles of inland waterways across England and Wales, including locks, bridges, dredging, water management and flood-related works. The policy objective is to support the Trust's waterway network infrastructure maintenance while it reduces reliance on government funding: keeping the public safe on and around the network, keeping waterways navigable in line with statutory obligations, and delivering associated public benefits such as health and wellbeing, recreation, active travel routes, green corridors, biodiversity and flood-risk mitigation.

Payments would run from 2027 to 2037GOV, starting at £49.99 million in 2027 to 2028GOV and tapering by 5% each yearGOV to £31.51 million in nominal terms in 2036 to 2037GOV.

Third parties who wish to comment on the compliance assessment must send submissions by 19 October 2026GOV to sau-defracrt2026@cma.gov.ukGOV, copying subsidyadviceunit@defra.gov.ukGOV, with a contact address and an explanation of the capacity in which they writeGOV. The Unit will only take a submission into account if it can be shared with DefraGOV, so respondents must give express consent for the full unredacted submission to be sharedGOV; material claimed as commercially confidential should be identified, and the Unit will contact the respondent before referring to it in the published report. The Unit's report is to be published on 16 November 2026GOV.

The legal basis is section 52 of the Subsidy Control Act 2022 and the Subsidy Control (Subsidies and Schemes of Interest or Particular Interest) Regulations 2022.

File any third-party submission on the compliance assessment by 19 October 2026 to both the SAU and Defra addresses, with express consent to share and confidential material identified.

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