Where is the money coming from?
DESPITE this being a season of goodwill, I cannot relate the British Waterways management's apparently relaxed attitude to the future funding of our waterways, writes Mike Stone.
Where is the money coming from or are they relying on negative tactics—‘fund us or your waterway will be closed'—to put pressure on supporters, local authorities, boaters and communities?
In recent years the Defra grants for England & Wales were shown to be as follows:
- FY 2008/9 £61.6m
- FY 2009/10 £57.4m
- FY 2010/11 £51.3m—based on BW press release
- FY 2011/12 £41.5m—based on Defra press release
- FY 2012/13 £39.0m
- FY 2013/14 £39.0m
- FY 2014/15 £39.0m
A loss of millions
If one ignores inflation over five years the BW annual grant has fallen by a massive 36.6%! This equates next financial year to a loss of £22.6 million of annual income.
The BW existing major streams of income have already fallen over the previous two years (Commercial by 11%; Third Party by 36%) and the current financial climate suggests that further reductions are likely.
Will not deliver
A change to charitable status will not deliver an alternative income stream of this scale to correct the deficit for several years.
The National Trust is quoted by BW management (and others) as an example that BW could follow. However, the NT has been operating for over 100 years, and has built both relationships and confidence with its supporters. It invests about £50m annually in marketing/staffing to raise the £250m it receives from individuals and charitable funds each year.
Never mentioned
It is a very significant part of NT activity. Such a structural change has never been mentioned by BW management, and indeed, would probably take several years to yield a return on investment.
So where is the money coming from? Does BW management really have a plan? Will the waterway network look the same in three years time?
The answers would be of interest to many of us.