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2024-03-31-accounts

Canal 6 RiverTrust Making life better by water Annual Report & Accounts 2023/2024

Annual Report of the Trustees of Canal & River Trust 2023/2024

Introduction
Chair and Chief Executive’s Introduction 3
Trustees’ Report (incorporating the Directors’ Report and the Companies Act 2006
Strategic Report Directors’ Requirements)
Strategic report
Caring for our canals 5
Providing places for people 8
Helping nature to thrive 11
Keeping history alive 12
Our performance and priorities 13
Section 172(1) Statement 16
SECR (Streamlined energy & carbon reporting) 20
Governance Overview 32
Independent Auditor’s Report to Members of Canal & River Trust 51
Financial Statements
Financial Statements for the year ended 31 March 2024 56
Membership of the Board of Trustees, Executive Team, Council
and Committees 107
Council Members as at 31 March 2024 108
Supporters of Canal & River Trust 111

Chair and Chief Executive’s Introduction

Our canal network is a national treasure – unique, living heritage dating back 250 years that connects our past to the present – and is able to play a vital role in our future prosperity. Canals and their free to access towpaths provide green-blue spaces on the doorstep for millions of people. They offer places to exercise and connect with nature for improved physical and mental health and they are traffic-free green corridors for active travel, nature recovery and wildlife migration. Our canals also bring wider benefits to society, supporting jobs and local economies, playing an important role in the nation’s water and utilities infrastructure, and even delivering new sources of renewable energy.

Over the past year our work to repair and strengthen the resilience of our precious network included almost 450 planned engineering projects, at a cost of around £70 million. The work to deliver statutory safety measures at our large reservoirs, critical in protecting the communities around them, continued to dominate our major project expenditure, with over £27 million spent on resilience works at 19 of the 71 large reservoirs we are responsible for.

Above: Anderton Boat Lift, Cheshire

The succession of winter storms we experienced across the country caused significant harm to the network, with an aggregated impact in the current and future years of £9 million in emergency works. Following the prolonged hot dry weather of summer 2022, this provided further evidence of the volatility of our climate and our vulnerability to extreme weather events.

This rising cost of protecting and maintaining our ageing canal network – with two years of high inflation pushing up many of our costs significantly – underscores the challenge presented by the Government grant settlement, announced after a long delay in July 2023, with steep funding cuts to be applied from 2027. Coming after a six-year period when the grant has been frozen (and hence its value would already have fallen by over 30% in real terms), this presents a very challenging prospect, putting the future of the canal network in jeopardy.

Nevertheless, we remain determined to secure a sustainable future for our waterways, their heritage and wildlife habitats. We’ll continue to make our

Canal & River Trust Annual Report & Accounts 2023/2024

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Foreword

case for the level of funding needed to enable the broad range and vast scale of benefits we deliver for the nation to be sustained for future generations. We look forward to working with the new government in an active partnership, recognising the potential of our canal infrastructure to contribute meaningfully to a range of issues facing the country – such as water security, urban regeneration and low-carbon solutions.

We thank everyone who has so far supported our #KeepCanalsAlive campaign, generating widespread public, media and political support – and acknowledge the role that the Fund Britain’s Waterways coalition of over 100 organisations has played in raising the profile of the funding campaign at a series of rallies and events.

In March 2024, to further support our case, we published our first Impact Report (Transforming Places and Enriching Lives) which brings together numerous examples of the effect of our work, as well as independent assessment of our network’s aggregate value – delivering £4.6 billion in annual social benefits and £1.5 billion in economic benefits.

It now represents 41.0% of our total income (2022/23: 38.1%). And our charitable income has started to rise as our new fundraising team is developing its plans to deliver significant growth in the years ahead.

It’s also essential that we control our costs as far as possible, and we’re adopting new and innovative ways of doing things where practicable. Key to our future is the growing role of our volunteers and this year we’ve achieved record numbers of volunteers and hours given. We have ambitious plans for further expansion to make volunteers integral to everything we do.

We’re committed to maintaining our canal network in good working condition for the benefit of our boating customers, the millions of regular towpath users, and the tourists who flock from around the country and the globe to experience it, and to protecting neighbouring homes and businesses from the threat that our ageing infrastructure could pose if not well-managed and cared for.

A key part of our long-term plan to reduce dependency on government funding (as we have done steadily since our formation) is to develop and grow alternative sources of income. During the year ended 31 March 2024, our commercial income was £97.1m, 12.2% higher than in the prior year.

Left: David Orr, Chair

Left: Richard Parry, Chief Executive

Canal & River Trust Annual Report & Accounts 2023/2024

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Foreword

Caring for our canals

With over 10,000 individual assets and structures including bridges, lock gates, reservoirs and aqueducts, many up to 250 years old, keeping our ageing waterways in safe working condition is a constant challenge.

Above: Welsh Harp, Brent Reservoir

We measure our performance against our internal key measures incorporating our Defra Waterway targets. By the end of 2023/24 we were pleased to have exceeded the targets relating to how we care for and manage our assets:

81.12%

of our towpaths were in grade C or better condition (target 80.0%, warning threshold 60%)

86.95%

of our principal assets were at grade C or better condition (target 86.5%, warning threshold 77%)

99.42%

of our flood management assets met grade C or better condition (target 99.0%, warning threshold 96.0%)

Key: Our Key Performance Indicators (KPIs) for 2023/24 are reported in these graphics with green backgrounds

We spent close to £49 million on around 80 large maintenance and repair projects, and our skilled teams of carpenters, stone masons and bricklayers completed further construction projects, at a cost of around £20 million.

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£27m
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spent on upgrading 19 large reservoirs

£49m on large maintenance and repair projects

£20m on in-house construction projects 111 lock gate leaves replaced and 89 locks repaired Repairs to 90 further structures including culverts, bridges, weirs and aqueducts

Reservoirs and water supply

We spent £27 million upgrading 19 of the large reservoirs in our care, including spillway replacements, access improvements, sluice gate and embankment repairs. Work is ongoing to bring back to active use Toddbrook Reservoir in Whaley Bridge. This involves replacing the auxiliary spillway damaged in 2019 with a larger structure to the side of the dam, as well as creating new facilities for local people and wildlife habitats. This highly complex project has taken taken longer than planned due to challenging ground conditions and a succession of winter storms impeding our progress and increasing costs. Construction work is now expected to be completed by the summer of 2025 and project costs have risen to nearly £50 million. Other projects included: Harthill on the Chesterfield Canal; Barrowford on the Leeds & Liverpool Canal; March Haigh on the Huddersfield Narrow Canal; and Brent Reservoir near the Grand Union Canal in West London.

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On the Kennet & Avon Canal at Crofton we completed the second phase of a £2.8 million project to replace the electric pumping system, keeping the 4-kilometre summit pound topped up with water.

Dredging

Nationally we spent over £6 million on dredging, removing over 82,000 tonnes of material from 21 locations, and improving 42 kilometres of waterway. We spent around £500,000 on flood recovery dredging and floodwater prevented us from carrying out some of our planned dredging work. Less than 5% of the dredged material was sent to landfill, and the rest was redistributed via our waterway banks, rivers, disposal lagoons and agricultural land.

Towpath improvements

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91% Towpath User Satisfaction (Target 87%)

cost over £270,000 to repair. In Leicester, the River Soar breached several times at Blue Bank lock, eroding the towpath and pushing the pilings over. The eastern end of the Kennet & Avon Canal was closed for several months due to extremely high water levels, widespread damage to towpaths, banks and lock walls, and extensive silt deposits. There were two major landslips on the Worcester & Birmingham Canal: on the embankment at the northern portal of Dunhamstead Tunnel; and just south of Shortwood Tunnel. There was also a major slip in the cutting at Easenhall on the Oxford Canal, requiring over 4,000 cubic metres of material to be cleared, and costing over £1 million to resolve.

Managing invasive plants

Warmer temperatures are accelerating the spread of invasive plant species like Floating Pennywort, which can grow up to 20cm a day forming thick mats on the surface of our waterways, starving the water of light and oxygen, causing problems for wildlife and boaters. We invested over £1.1 million removing weeds and invasive plants from our waterways.

Flood management

During 2023/24, thanks to external funding from a range of partners, we upgraded over 32.5 miles (52.3 kilometres) of towpaths, at a cost of £16.4 million. Ninety one per cent of towpath users were generally satisfied, up 5% on last year.

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32.5 miles of towpath improved

Our canals can play a significant role in alleviating flooding. For example, during Storm Babet in October, we fully opened our feeder sluice to take extra water into the Chesterfield Canal at Worksop, supporting the Environment Agency to reduce levels in the River Ryton.

Managing waste

Through our waste contracts we collected over 6,700 tonnes of waste from our waterways, of which 97% was recycled or recovered through waste to energy, and 3% went to landfill.

Dealing with emergencies

From leaks in embankments and waterway walls, storm damage, flooding and blue green algae, to bridge strikes by road vehicles, vandalism, fly tipping and pollution incidents, we deal with dozens of emergencies across our network every week.

The impact of climate change

Our changing climate continued to have a massive impact on our waterways. 2023 was the warmest year on record and in early summer, the combination of warm weather and storms reduced the amount of oxygen in the water in many areas, causing an unprecedented number of fish deaths across our network. Supported by the Environment Agency we installed emergency aerators and pumps at 25 locations.

The succession of named storms wreaked havoc on our network. Thousands of trees were blown down, towpaths were washed away, banks and culverts collapsed, and landslides occurred. A breach on the Leeds & Liverpool Canal at Burscough in Lancashire

Volunteering

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8.1 Volunteer engagement average score out of 10 (Target 8.5)

739,443 Active Volunteer Hours (Target 725,000)

4,566 Active Volunteers (Target 4,500)

Our volunteers help us to carry out research and repairs, protect wildlife, manage invasive species and bring experiences to life. We continued to expand volunteering involvement, and strengthen ties with local communities to encourage them to help care for their local waterways.

Canal & River Trust Annual Report & Accounts 2023/2024

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Our people

We saw continued improvement in our safety performance with a further reduction in our accident frequency rate, down to 0.16 RIDDOR reportable per FTE, for the first time compared to 0.18 the previous year.

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0.16 Safety of our colleagues accident frequency rate (Target 0.16)

Ninety eight per cent of colleagues and volunteers completed mandatory training. We were pleased to see continued improvement in our colleague engagement score as well as maintaining an overall safety engagement score of 8.9 (out of 10). Our Safety Culture Group, made up of colleagues and volunteers from across the Trust developed a set of ‘Health and Safety Promises’ launched just after the year end. They set out commitments at all levels of the organisation to improve safety practice and management.

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7.9 Colleague engagement score (Target 7.5)

Community payback

As part of our national partnership with the Ministry of Justice and His Majesty’s Prison & Probation Service to contribute to the delivery of the Government’s rehabilitation agenda, around 50,000 hours of community payback activity helped improve our waterways at 25 sites.

Fundraising

Our income from charitable activities (excluding Defra grant funding), partners, national and society lotteries, our museum and visitor attractions, and third party funded regeneration projects was up 7% to £25.9 million (£24.1 million in 2022/23). We benefited from a number of Government stimulus funds and spending programmes, including the Levelling Up, Towns and Shared Prosperity funds, Active Travel England, Sport England and the National Lottery.

Players of People’s Postcode Lottery have raised over £2.5 million, awarded by Postcode Earth Trust, in support of a wide range of projects, from priority infrastructure projects to our flagship community engagement programme Community Roots.

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27,263 Friends (regular supporters) (Target 30,000)

Diversity and inclusion

We have introduced a new diversity strategy, ‘Stronger Together’. This sets out how we will address the challenges we are facing specifically on hiring and retaining people of colour but also delivering D&I more broadly across the organisation.

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4.98% of colleagues from ethnically diverse background (Target 5.25%)

8.53% of recent hires from ethnically diverse backgrounds (Target 12%)

Operations & Maintenance Review

We carried out a major review of everything we do to operate and maintain our network, examining ways to do things better. We heard the lived experience of over 2,000 colleagues and volunteers and analysed over 5,000 feedback comments to identify the best opportunities to make our waterways safer and more sustainable, for the benefit of our customers and colleagues. Learning from the review, we are now embarking on an improvement programme.

In difficult external conditions, both due to economics and environment, we managed to grow our Friends community back to over 27,000 from a low of just under 26,000 in 2022/23. We remain committed to growing this valued community of donors to over 30,000, returning to our prepandemic size. We thank our Friends for showing their commitment to our cause. We’re also grateful to those who have donated one-off gifts or taken part in sponsored challenges.

More information on how we comply with fundraising regulations can be found within the Governance Overview below.

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50% Brand Awareness (all) (Target 52%) 65% Brand Awareness (living within one kilometre) (Target 68%)

During 2023/24 public awareness of the Trust remained at 50%, falling short of our target increase to 52%. Over 1.6 million people supported us across our social media channels and as email subscribers, regular donors and volunteers, up from 1.4 million last year.

Canal & River Trust Annual Report & Accounts 2023/2024

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Providing places for people

Our waterways provide millions of people with easy access to blue and green outdoor space, for exercise and the chance to connect with nature, crucial for mental and physical health and wellbeing. We’re committed to looking after the waterways in our care, ensuring everyone who uses them can do so safely and confidently.

Above: Grand Union Canal, Braunston

This year, over 859 million visits were made to our waterways. The very wet weather undoubtedly contributed to the decline in visitors, following the record highs of the previous year.

Bringing people to our waterways

During 2023/24 we hosted a total of 2,220 events, with an estimated attendance of 585,000. These included 1,628 Trust-led events, enjoyed by approximately 176,000 people, and 592 externally led events, attracting around 409,000 visitors.

80%

of people living within one kilometre corridor recognise the value of waterways (Target 79%)

10.3 million

visitors in typical two-week period (Target 10.4 million)

859 million

unique visits over the year (Target 900 million)

50%

of local people living within one kilometre use our waterways regularly (Target 54%)

Our in-person and virtual open day events gave visitors a behind-the-scenes or below-thewater view of waterway walls and other historic structures, and the chance to find out more about the work we do to maintain our network. This winter we hosted three face to face events attracting around 2,600 visitors and three virtual open days.

Through the support of players of People’s Postcode Lottery, 19,364 people had the chance to enjoy one of our 1,082 ‘Let’s’ events, including Let’s Fish, Let’s Walk and Let’s Paddle.

In March 2024 we celebrated the 250th anniversary of the Bingley Five Rise Locks, one of the ‘seven wonders of the waterways’ with a family-friendly public event that attracted around 4,000 visitors. And in partnership with Swansea Canal Society, thanks to funding from The National Lottery Heritage Fund in Wales, we asked canal lovers to travel a mile of the Swansea Canal by canoe or kayak to celebrate the canal’s 225th anniversary.

Canal & River Trust Annual Report & Accounts 2023/2024

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Towpaths for everyone

We published our ‘Towpaths for everyone’ policy setting out how our historic and typically narrow routes can be sustainably used, managed and made more accessible for the benefit of all. Developed in partnership with boaters and other representatives of the users of the canal system, Active Travel England, Sustrans and Sport England, the policy includes a code of conduct for visitors.

Social prescribing

Social prescribing supports a preventative approach to relieve pressure on the NHS. Working with our partners, we continued to build on the learning and impact of our green social prescribing pilot programmes ‘Waterways and Wellbeing’ and ‘Isolation to Inclusion’.

Our ‘GP guided walks in Birmingham’ aim to address social isolation and loneliness, providing the opportunity to talk to a GP whilst enjoying the great outdoors. Working with the Active Black Country partnership, this programme has been extended to other areas in the West Midlands with a range of healthcare professionals. And our ‘Chats with Chaps’ project is providing a safe place for men to talk together whilst trying new activities, including canoeing, fishing, narrowboat trips and making bird boxes.

Keeping people safe

Personal security ratings of people using our waterways increased by 1% to 84%.

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37 reported public safety incidents related to defects of our infrastructure (Target <48)

Feel Safe By Water 84% (Target 84%)

The number of reported public safety incidents related to defects of our infrastructure also decreased from 50 reported incidents in 2022/23 to 37 in 2023/24.

We continued to promote the safe use of our waterways through a series of programmes and campaigns. For example our Water Safety for Little Explorers campaign, where thanks to funds raised by players of People’s Postcode Lottery, we launched a new storybook ‘Quack Quack, Take Two Steps Back!’ to help young children understand how to stay safe by water.

Community Roots

A significant proportion of our waterways run through some of the most deprived areas in the UK. Supported by players of People’s Postcode Lottery, our Community Roots programme aims to increase canal and river use, volunteering and community ownership in nine urban areas, helping to reduce health inequalities.

During 2023/24 22,729 people, including 5,755 children and young people, gave over 19,000 volunteer hours, adopting 18 stretches of canal, planting 137 trees and 800 shrubs, improving over 11,000 square metres of space and collecting more than 3,300 bags of plastic waste.

Education and learning

Working with our eduction volunteers, we further developed our outdoor learning offer for schools, groups and families.

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Over

103,000 children took part in our Canal & River Explorers and STEM outdoor learning programmes

Our Canal & River Explorers team delivered water safety sessions to 77,593 children and distributed over 61,730 water safety activity booklets. Almost 25,000 children took park in our Explorers Challenge Badge for groups.

Canal & River Trust Annual Report & Accounts 2023/2024

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Green and Blue Flag awards

We secured a further 172 miles of Green Flag status waterways, so 737 miles of our canals (more than a third of our network) have now been awarded this international benchmark for well-managed parks and green spaces. The Blue Flag award for our Royal Albert Dock and Salthouse Dock in Liverpool was reconfirmed, recognising outstanding environmental information, management, safety and boating services.

Responding to our customers

We work hard to provide a responsive and efficient service to our customers. Across the year our customer service teams and partners answered 99,228 calls, 47,056 emails and 4,566 website live chats.

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88.8% of customers were satisfied with how their query was dealt with 99.8% of our licensing related enquiries were resolved at the first contact

Supporting boaters & boating

In 2023 we published the results of our first ever Boater Census, helping us to understand the different needs of those who live on or who use their boats for leisure. Nearly a third said they had difficulties accessing health services.

We convinced the Government to extend the energy support scheme to continuous cruisers and responded to its draft Clean Air Strategy asking for financial support for the development of new, cleaner technologies for boaters.

Working with the newly formed Accessible Waterways Association, we introduced the ‘Accessible Mooring Bollard’ and Boaters’ Blue Cards. Our new equality policy under the Equality Act 2010, sets out our approach to making sure everyone can access our waterways.

In London we introduced more new pre-bookable visitor moorings at Little Venice and Paddington Basin, and standardised the mooring stay times along the canals in central Birmingham.

Our income from boat licences and mooring fees was up 9% to £51.5 million (£47.3 million in 2022/23). Revenue from boat licence fees currently makes up 11% of our annual income, and is vital to ensure the ongoing maintenance and repair of the historic canals and rivers in our care.

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46% Boater Satisfaction (Target 56%)

We announced an increase in licence fees above inflation for each of the next five years for all boats on our waterways, starting with a 6% increase effective from 1 April 2024. The increase in licence fees, combined with the disruption to our network from our reservoir works, drought, storms and the warm wet weather increasing vegetation growth, no doubt contributed to the significant drop in our Boater Satisfaction rating. We are committed to listening to the concerns of boaters and to addressing them, including a focus on getting the basics right on canal maintenance and improving communication.

Our 2024 National Boat Count showed a 1.4% drop in boat numbers. We counted 32,602 boats on our network, including private marinas. Licence compliance was 91.8%, down from 93.0% last year. This drop continues the post-pandemic trend, with the cost-of-living increases being a challenge for many in society.

Across the network, the total number of boats with a home mooring has decreased by 3.7%, while the total number of continuously cruising boats has increased by 4.9%.

We do everything we can to support boaters who are struggling to stay on the water. Our boat licence customer support and boater welfare teams work with boaters to find solutions, including accessing available benefits for those living afloat on low incomes.

It’s important that we manage boats on our canals fairly. Despite our best efforts to resolve matters, when all other avenues have been exhausted, we take action to remove boats and in 2023/24 we removed 106 unlicensed boats from the network.

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Strategic Report

Helping nature to thrive

Our canals and rivers provide green corridors in the heart of our busiest cities, linking fragmented wildlife habitats and supporting biodiversity.

Fighting plastic pollution #PlasticChallenge

Around 14 million pieces of plastic end up in or around our canals and rivers every year, devastating wildlife in our waterways and the oceans beyond. Our Big Plastic Pick Up campaign urged people to donate towards the cost of tackling the problem and to pledge to pick up plastic rubbish. The money raised will fund interventions such as bubble barriers, sea bins and equipment for volunteers.

The Anglesey Branch Canal

This SSSI waterway links several important heathlands through north Walsall and is home to rare plants species, such as floating water-plantain, tubular water dropwort, sundew and wild cranberry. Purple Horizons (NE) funded the clearance of 340m² of dense bracken, exposing the sand beneath for the benefit of ground nesting bees. And heather seed from the vicinity was sown onto the newly disturbed sands.

Soft bank protection

The Montgomery Canal in Mid-Wales is a Site of Special Scientific Interest (SSSI) and Special Area of Conservation. Thanks to funding from the Government’s UK Levelling Up Fund, in partnership with Powys County Council, and supported by the Montgomery Canal Partnership, we completed the second phase of dredging, vegetation and tree works along a 2.4 kilometre stretch of the Montgomery Canal from Bridge 99 to Vyrnwy Aqueduct. An 800-metre section of the canal bank was stabilised using coir rolls and timber stakes, creating a soft bank for wildlife such as water voles, wild fowl and invertebrates.

We care for 68 Sites of Special Scientific Interest and 1,954 county wildlife sites intersect our landholdings

Welsh Harp Brent Reservoir

With our partners in the Welsh Harp Strategy Group, we published a new joint vision for the Welsh Harp Brent Reservoir SSSI, one of London’s most significant urban wild spaces. The Vision includes steps to enhance biodiversity, reduce pollution and increase community access.

Conserving rare aquatic plants

Working with the Rare British Plants Nursery, we began a research project examining two species of rare aquatic plants on the Montgomery Canal, looking at ways to develop effective conservation strategies for them. The long-stalked potamogeton praeongus and flat-stalked potamogeton friesii improve water quality, provide shelter for aquatic organisms and act as a primary food source for waterfowl and fish.

Over the winter, we drained the reservoir, ahead of statutory safety works to its sluice gates. Over 100,000 fish were rescued and re-homed across our network. The work was supported by players of People’s Postcode Lottery. We carried out a series of environmental improvements, including creating new wetland bird nesting areas in the reed beds, willow coppicing and removing over 1,000 bags of rubbish, tyres, safes, e-bikes, suitcases and parking metres.

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Keeping history alive

We care for what is widely recognised as the third largest collection of listed heritage buildings and structures in England & Wales and our canals represent the finest example of industrial heritage in the world, attracting visitors from across the globe. The impact of climate change and high inflation rates are seeing the cost of caring for our 250-year old ageing infrastructure rise significantly.

Above: Pontcysyllte Aqueduct, Llangollen Canal

Anderton Boat Lift

We launched an appeal to ‘Keep Anderton Boat Lift Alive’, supporting a major refurbishment project to ensure Cheshire’s historic ‘Cathedral of the Canals’ remains operational for the next generation. The unique 150-year-old structure, the world’s first major commercial boat lift, is now a major visitor attraction, transporting around 3,000 boats a year between the Trent & Mersey Canal and the River Weaver Navigation.

a 350-metre section of the canal from Crickheath towards Schoolhouse Bridge.

Our heritage estate includes over 2,700 listed buildings and structures, 304 conservation areas, 4 World Heritage Sites and 46 scheduled monuments

Restoring the Montgomery Canal

Thanks to the support of volunteers and funding from The National Lottery Heritage Fund, the restoration of a one-and-a-half-mile section of the Montgomery Canal in Shropshire between Maesbury and Crickheath was completed, restoring navigation for eight miles from Frankton Locks to Crickheath Basin. Over 60% of the canal has now reopened for boating, with 13 miles in Welshpool in Mid-Wales also restored.

We secured a further £177,625 funding from the government’s UK Shared Prosperity Fund via Shropshire Council, and another £76,250 from the Shropshire Union Canal Society and Restore the Montgomery Canal public appeal, for the next phase of the volunteer-led restoration, focussing on

Pontcysyllte Aqueduct World Heritage site

We drained the Pontcysyllte Aqueduct for its 20year inspection and continued repairing the cast iron hand rails on this Scheduled Monument in North Wales.

Visits to our museums

We care for over 15,000 objects and 76 national historic ships across our museums at Gloucester, Ellesmere Port and Stoke Bruerne. Over 98,000 people visited our museums and over 143,000 experienced our visitor centres at the Anderton Boat Lift, Standedge Tunnel, Diglis Island and Trevor Basin. With support from players of People’s Postcode Lottery, we launched our first online collection of digital 3D photographs, with a ‘Roses and Castles’ theme, showcasing diverse artistic styles and objects decorated in this way.

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Our performance and priorities

Our purpose is to secure a sustainable future for our waterways, to maintain and care for them so that they are safe, resilient and available; and to promote and extend their benefits for all, so that we maximise their positive impact for people, nature and the economy.

Above: Brindleyplace, Birmingham

Climate change and inflation are increasing the cost of caring for our vulnerable ageing network, at the same time as our government funding is reducing. We’ve undertaken a strategic review redefining how we’ll work towards achieving our long-term vision of living waterways that transform places and enrich lives. Our revised strategy will help us respond to the changed world around us and focus on what is most important for the future sustainability of the canal network that we care for.

Our priorities and KPIs for 2024/25 are shown on the following page, which also shows performance against our 2023/24 KPIs. We were pleased to exceed our targets in several areas, such as in volunteer numbers and hours contributed, the safety of colleagues and the public on and around our waterways, and towpath user satisfaction. In other areas we achieved close to target, such as

visitor volume in a typical two-week period and public awareness of the Trust.

However, in some key areas – most notably boater satisfaction, but also overall visit numbers and increase in active regular givers (Friends) – we failed to achieve our targets. Given the open nature of our canals, the poor winter weather is likely to have been a contributory factor both directly and indirectly, with Friends’ growth rate also affected by the need to build our internal fundraising capacity. We were concerned not to reach our targets for colleagues of ethnically diverse backgrounds, with lower than hoped recruitment and retention rates. We will be putting additional focus on all these areas in 2024/25 and beyond – see the table and commentary that follow on pages 14 and 15.

Canal & River Trust Annual Report & Accounts 2023/2024

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2023/24 performance summary and priorities for 2024/25

The preceding sections of this report have provided a brief summary of performance in all key areas. In response to this performance and our external strategic review, we have identified our areas for focus in 2024/25, reflected in the table below.

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Grow our commercial and charitable income 2023/24 2023/24 2024/25
Target Actual Target
Grow the number of active regular givers 30,000 27,263 31,000
People aware of the Trust (all) 52% 50% 52%
People aware of the Trust (living within 1 km) 68% 65% 67%
Deliver the basics well
Broadly maintain towpath user satisfaction 87% 91% 90%
Increase boater satisfaction 56% 46% 54%
Further reduce reported safety incidents due to our infrastructure <48 37 <35
Reduce colleague accident frequency rate 0.16 0.16 0.15
Increase colleague engagement score 7.5 7.9 8.0
Increase volunteer engagement score 8.5 8.1 8.3
Grow percentage of colleagues from ethnically diverse backgrounds 5.25% 4.98% 5.10%
Improve infrastructure resilience
Reduce the number of critical assets rated category 1 <143 139 <138
Grow public support
Grow visitor volume (over a typical two-week period) 10.4 million 10.3 million 10.4 million
Grow number of unique visits (over the 12-month period) 900 million 859 million 900 million
Increase number of volunteer hours 725,000 739,443 760,000
Increase number of active volunteers 4,500 4,566 4,800
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Develop and publish our first Climate Adaptation Report

In addition to the KPIs above, we continue to maintain and monitor our performance against certain asset condition KPIs set by Defra, exceeding targets in 2023/24. These targets are shown on page 5, ‘Caring for our Canals’.

Canal & River Trust Annual Report & Accounts 2023/2024

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Priority 1: Grow our commercial and charitable income

Our Fundraising Strategy has been developed and was approved by the Board in July 2024. This sets our ambition and guides our work on charitable income, not only on growing the number of Friends who support us regularly, but also on growing income from donations, charitable activities, our attractions and third-party funded projects. We will activate a larger face-to-face fundraising team and have identified areas for improvement in supporter care. Both charitable and commercial income growth will help to reduce the proportion of the Trust’s total income that comes from the Defra government grant.

This year we increased the total number of supporters (active and passive) across all our channels, including social media, to over 1.6 million, and we will continue the marketing and digital activity that is instrumental to growing our passive supporter base.

Priority 2: Deliver the basics well

In response to the disappointing results of our Boater Satisfaction Survey we have put together an action plan, drawn up in consultation with boater representatives on our Council and in our Advisory Groups. We recognise that improving the basics – such as fixing lock gates and paddles more quickly and better management of grass and vegetation to improve navigation – is essential, as is enhancing communication with our boating customers to keep them better informed, providing good responses at key touchpoints and making sure we optimise customer service facilities as best we can within our resources.

We will continue to act on opportunities for external funding from local authorities and other partners to upgrade our towpaths.

We aim to sustain the improvement in safety incidents that arise as a result of our infrastructure, with a number of measures including better data gathering and analysis, and will continue with initiatives to grow engagement, including various opportunities for two-way conversations

with colleagues and our new ‘Assemble’ app for volunteers.

We have identified ethnicity as a key priority in our 2023-26 ‘Stronger Together’ diversity strategy, which includes actions to implement support networks and development opportunities for under-represented groups, understanding the experiences of different groups, and supporting external events that celebrate the diversity of the communities that we welcome to our canals.

Priority 3: Improve infrastructure resilience

We will continue our ongoing programme of work to strengthen the resilience of our assets, undertaking planned maintenance and repair projects and addressing reservoir safety measures, with reactive repairs to our network carried out alongside these planned works. This work, which is vital to improve the safety and resilience of our network, will continue to put pressure on our ability to deliver our other charitable objectives.

Priority 4: Grow public support

Our objectives around growing public support are closely interwoven with the activities to grow our charitable income and raise public awareness of the benefits of the canal network. We will launch public campaigns to highlight different aspects of our work, such as the summer 2024 nature campaign, a repeat of the ‘Big Plastic Pick-Up’ in September, what goes on behind the scenes of our winter works, and our ongoing work to educate children and young people about safety along our waterways. In terms of volunteering, we will continue our listening sessions to shape action plans for improving communication and connection with our volunteers.

Priority 5: Develop and publish our first Climate Adaptation Report

The Trust will this year feed into the government’s fourth round of climate adaptation reporting. Our first Climate Adaptation Report will be issued by the end of 2024, explaining the strategic framework for how the Trust responds to the effects of climate change.

Canal & River Trust Annual Report & Accounts 2023/2024

Strategic Report

15

Section 172(1) Statement

As directors of a large company limited by guarantee, registered as a charity, the Trustees are required to report how they have performed their duty under section 172(1) (“s.172(1)”) of the Companies Act 2006.

S172(1) provides that, for charitable companies where the purposes of the company are something other than the benefit of its members, the Trustees must act in the way they consider, in good faith, would be most likely to achieve its charitable purposes. Specifically, they must have regard (amongst other matters) to the following factors (contained in s172(1) (a) to (f)):

The Trust complies with s.172(1) of the Companies Act 2006. Trustees recognise the crucial role of the various stakeholders in supporting the Trust to achieve its charitable purpose. The Trust believes strong working relationships with partners and wider stakeholders to be of paramount importance; by working together, the Trust can achieve its long-term goals more effectively.

Trustees receive reports at each board meeting from the Executive Team which include details of the Trust’s external relations and engagement with partners. The views of key stakeholders are relayed to Trustees to enable them to consider the impact of their decision making upon such stakeholders.

Trust Board meetings during the financial year covered a number of matters. Key matters considered by the Board during the financial year include (not exhaustive):

Section 172(1) Statement

Canal & River Trust Annual Report & Accounts 2023/2024

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The agenda and supporting papers for the Board of Trustees meeting can be found on the Trust website here: Meetings | Canal & River Trust (canalrivertrust.org.uk)

The Trustees specifically considered impacts on stakeholders when making key decisions in relation to revising the business plan to respond to programme delays and inflation rises, when reviewing strategic programmes and undertaking the annual strategic review of risk.

The Trust has a wide range of stakeholders. The engagement with key stakeholders within the reporting period and the outcomes, are described below. This section includes the Trust’s statement on employee engagement and its engagement with beneficiaries, services users, suppliers, customers, the wider community and others in business relationships with the Trust.

Our Key Stakeholders – Colleagues

Trustees value the contribution that our colleagues (employees) and volunteers make to the successful delivery of our strategy and charitable purpose.

How the Board engages with them and ensures that their interests are taken into account

Trustees, via reports to the Board (including a standing report from the Trust’s People Director) and committees, take into account colleagues’ and volunteers’ interests when making decisions, including health & safety, safeguarding, diversity & inclusion and engagement.

Reports to the Board included updates and outcomes on trade union and other colleague consultations. In May 2023, the Board was informed of the National Joint Forum which included key discussions including on call and standby arrangements, night workers, car allowances for staff as well as the other policy and process work.

As detailed within the Governance section, diversity and inclusion remains a key focus of the Board, who were also updated on the continued growth during the year of the Trust’s inclusion ‘circles’ (employee networks - including Armed Forces, Caring for Dementia, Ethnicity, Menopause, Neurodiversity, Rainbow and Women).

The success of the Trust’s colleague engagement initiatives were measured through the year using our annual colleague and volunteer engagement survey as well as additional pulse surveys, and the outcomes shared with the Board.

The standing Board report from the Trust’s Director of Health & Safety includes an update on significant and/or reportable colleague health and safety incidents and initiatives which Trustees routinely interrogate and continue to push for the highest possible standards.

Our Key Stakeholders – Communities and the Environment

Trustees engage with the communities the Trust operates within – nationally and regionally – to understand the issues that are of importance to them and the impact of the Trust’s activities on communities and the environment.

How the Board engages with them and ensures that their interests are taken into account

The Board engages with key stakeholder groups via their elected and nominated representatives on the Council, at the Annual General Meeting and other Council meetings every year.

The Trust’s Regional Advisory Boards and National Advisory Groups help the Trust to access local knowledge and ideas, and to build relationships, reach diverse local communities and stakeholder groups, and translate national priorities into local initiatives.

Section 172(1) Statement

Canal & River Trust Annual Report & Accounts 2023/2024

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Regional Advisory Board Chairs are ex officio members of Council, providing additional opportunities for engagement.

Elsewhere, the Trust puts a significant amount of resource into community-based activities, which during the year included successful Open Days across the network.

The Annual Public Meeting provides an opportunity for Trustees to hear the questions and views of local stakeholders, enabling them to have these views in mind when making decisions that have a wider impact upon communities and the environment. The Annual General Meeting of Council in September 2023 was held in Milton Keynes and March 2024 the Council meeting was held at the Albert Docks in Liverpool.

Trustees met in person during the year, holding Board meetings and site visits in the regions which the Trust operates in and engaging with stakeholders at a series of evening receptions which took place in Milton Keynes, Newport, Stoke on Trent, Leeds and London.

The Board took account of the Trust’s impact on communities and the environment when developing and reviewing its strategic programmes. For example, our ecological footprint and baseline have been established and internal guidance for colleagues produced in readiness for the introduction of the mandatory Biodiversity Net Gain in the planning system in England which went live on 12 February 2024.

The Board took account of the impact on local communities when undertaking its annual strategic review of risk, particularly in relation to possible risks of major breaches of assets with a high consequence of failure, in terms of flooding and local disruption.

Our Key Stakeholders – Customers and Visitors

Trustees recognise the variety of the Trust’s customers and visitors and aim to foster good relationships and uphold the highest possible service standards.

How the Board engages with them and ensures that their interests are taken into account

Customer views and requirements are gained through a range of mechanisms with regular surveys to provide insight on customer satisfaction and other measures of service, which the Board took into account when considering boat licence fee rates and customer service facilities. The Trust’s Annual Public Meeting provides customers and visitors with the opportunity to ask questions of the Chair and Chief Executive on a broad range of topics. In addition, Regional Advisory Boards also held local online Annual Public Meetings, giving local stakeholders further opportunity to engage with the Trust.

Customer and user groups make up our National Advisory Groups, which help inform Trust policy in particular areas such as navigation, fishing, heritage and the environment, particularly in the context of Board consideration of the updated Towpath and Heritage Policies.

Trustees also receive updates on customer and visitor views via the Chief Executive’s standing report to each Board meeting, and consider those views, where relevant, as part of their decision.

Our Key Stakeholders – Suppliers and Businesses

Trustees recognise the importance of fostering good business relationships with suppliers

Section 172(1) Statement

Canal & River Trust Annual Report & Accounts 2023/2024

18

and other businesses in the inland waterway sector and more widely, and of maintaining a reputation for high standards of business conduct, to help achieve the Trust’s charitable aims and long-term success.

How the Board engages with them and ensures that their interests are taken into account

The Board has approved recently an updated Procurement Policy Statement which defines for suppliers the Trust’s standards of business ethics and conduct. Trustees have approved a Modern Slavery Statement and Anti-Fraud and Bribery Policy, which suppliers must adhere to. The Trust also has a policy in place to ensure its compliance with competition law in terms of its activities in areas where it is the network operator and a commercial participant (e.g. Waterside Moorings).

During the year, the Board approved a number of contracts in accordance with the agreed scheme of delegation, taking into account suppliers’ and businesses’ interests when doing so. For example, in October 2023, the Infrastructure Committee held a meeting focussed on the contract tenders for professional services and ground investigation prior to Board approval in January 2024 providing strategic challenge and assurance to the Board of Trustees that the processes were fair and robust.

Our Key Stakeholders – Government and Regulators

Trustees are fully aware of the role of Government in setting policy objectives and regulators in terms of compliance with relevant legislation.

How the Board engages with them and ensures that their interests are taken into account

During the financial year, the Board was kept updated on grant review discussions with Defra and subsequent correspondence with Ministers and senior Defra officials following the announcement of the grant review decision.

The Trust held a parliamentary reception on 6 March 2024 which generated a good level of engagement with Parliamentarians and saw the launch of our Impact Report (‘Transforming Places and Enriching Lives’), which provides both quantitative and wide-ranging qualitative evidence of the benefits delivered by the Trust and its canals.

Trustees are updated on legal and regulatory developments at each Board meeting and take these into account when making decisions.

Section 172(1) Statement

Canal & River Trust Annual Report & Accounts 2023/2024

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SECR (Streamlined energy & carbon reporting)

Carbon Footprint 2023/24

==> picture [484 x 237] intentionally omitted <==

----- Start of picture text -----
Activity Energy (kWh) Emissions (tCO₂e)
Scope 1 Total 11,582,347 2,608
Natural Gas (Mains) 2,815,799 515
Transport 8,753,432 2,090
Other Fuels 13,116 3
Scope 2 (Location-Based) Total 13,817,722 2,861
Electricity (Location-Based) 13,817,722 2,861
Scope 3 Total 3,182,278 743
Business Travel – Employee owned vehicles 2,861,903 694
Business Travel – other 320,375 49
Total 28,582,347 6,212
Intensity Ratio – Emissions (tCO₂e) per Expenditure on Charitable Activities (£million) 33.04
Outside of scopes Emissions (tCO₂e)
Transport and Other Fuels (biogenic content) 145
----- End of picture text -----

Carbon Footprint 2022/23

==> picture [484 x 192] intentionally omitted <==

----- Start of picture text -----
Activity Energy (kWh) Emissions (tCO₂e)
Scope 1 Total 12,269,294 2,780.68
Natural Gas (Mains) 2,978,456 543.69
Transport 9,224,909 2,222.14
Other Fuels 65,929 14.85
Scope 2 (Location-Based) Total 17,421,456 3,368.96
Electricity (Location-Based) 17,421,456 3,368.96
Scope 3 Total 3,110,520 767.01
Business Travel – Employee owned vehicles 3,026,002 746.58
Business Travel – other 84,518 20.43
Total 32,801,270 6,916.65
Intensity Ratio – Emissions (tCO₂e) per Expenditure on Charitable Activities (£million) 35.65
----- End of picture text -----

Quantification and Reporting Methodology

The Trust has taken guidance from the UK Government Environmental Reporting Guidelines (March 2019), the GHG Reporting Protocol – Corporate Standard, and from the UK Government GHG Conversion Factors for Company Reporting document for calculating carbon emissions. Energy usage information (gas and electricity) has been obtained directly from our energy suppliers and half-hourly (HH) data, where applicable, for the HH supplies (there was no estimation profiling required). For supplies where there wasn’t complete 12-month energy usage available, flat profile estimation techniques were used to complete the annual consumption. Transport mileage data was obtained from expense claims submitted for our company cars and grey fleet. CO₂e emissions were calculated using the appropriate emission factors from the UK Government GHG conversion information.

SECR (Streamlined energy & carbon reporting)

Canal & River Trust Annual Report & Accounts 2023/2024

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Carbon Footprint comparison 2022/23 to 2023/24

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----- Start of picture text -----
Activity Difference (tCO₂e) Difference (%)
Scope 1 Total (173) (6)
Natural Gas (Mains) (29) (5)
Transport (132) (6)
Other Fuels (Workboat, plant and equipment fuel) (12) (81)
Scope 2 (Location-Based) Total (508) (15)
Electricity (Location-Based) (508) (15)
Scope 3 Total (24) (3)
Business Travel – Employee owned vehicles (53) (7)
Business Travel – other 28 139
Total (705) (10)
----- End of picture text -----

Carbon Footprint Comparison

The Trust’s emissions decreased by approximately 705 tonnes tCO₂e or 10% from 2022/23. These reductions were achieved through the continued rationalisation of our property assets and capital energy efficiency measures as outlined below. As a consequence of this decrease in our property footprint, travel mileage overall increased. However, carbon emissions from transport were lower overall due to the increased use of lower carbon rail travel, rather than use of the Trust fleet and employee-owned vehicles which showed a 6% and 7% decrease in emissions respectively.

Energy Efficiency Measures

We continue to explore and implement a number of energy savings and carbon reduction initiatives as outlined below. Our multi-team Energy Usage Group continues to meet and identify opportunities across the network

Pumping efficiency programme

We have continued to refine the operational conditions for the large pumps installed at Gloucester Docks. The new pumping system now includes additional software for reducing starting and stopping power loads and we have installed power factor correction equipment to deliver further efficiencies.

We have also replaced a pump at the River Tove pumping station, with around a 10% improvement in efficiency. We have also installed enhanced Supervisory Control and Data Acquisition (SCADA) systems at Bath Deep Lock Pumping Station to match pumping requirements to timed usage. We have also commenced installing new efficient automation as our West India Dock site.

Trust’s Estate

We continue work to rationalise our estate to reflect our operating requirements. We have installed LED lighting and lighting efficiency systems where we have refurbished sites, including at our lighterage depots in Osset and Leighton Buzzard, which were upgraded last year.

We continue to explore opportunities to generate low carbon electricity across the estate, including that associated with hydropower. We have progressed to detailed design for solar installation as two of our depots.

Electrifying our road fleet

We commenced a review with an external provider to review our transport fleet and explore its practical transition to electric power.

Carbon Reduction Plan

We continue to work on our carbon reduction plan and associated cost sensitive roadmap in line with the Trusts strategy. We have introduced additional carbon questions in our large procurement documents and seeking to better track carbon emissions in our upstream construction supply chain.

SECR (Streamlined energy &

carbon reporting)

Canal & River Trust Annual Report & Accounts 2023/2024

21

Finance Review

Introduction

This Finance Review outlines the financial performance of the Trust in the year ended 31 March 2024.

The Trust has seen an increase in income in the year to £237.3m (prior year: £225.1m). Boating income has increased in line with inflationary increases applied at the start of the year, with commercial income increasing above inflation as a result of some one off project income recognised in the year. The Trust’s Defra grant funding has remained fixed at £52.6m and now represents 22.2% of total income (prior year: 23.4%). Grant income as a proportion of total income is expected to continue to decline in future years as the amount will remain fixed until the current funding agreement expires in 2027.

In order to generate this income, the Trust has incurred expenditure on raising funds of £43.7m (prior year: £41.4m). Over 90% of these costs were incurred in order to generate our commercial income streams, with only £4.2m incurred to generate our donations income.

Charitable expenditure was at record levels at £208.6m, and it is pleasing to see that the trend over a 10 year period (as shown by fig.4 below) is that we are sustainably increasing our charitable expenditure over the long term, albeit that due to the age of the network and the ongoing impacts of climate change, more and more of this expenditure is going on our reservoirs and other critical assets.

The full year deficit (net expenditure before losses on investments and our share of expenditure from joint ventures) was £15.1m (prior year: £22.8m), and after deducting a loss on investments and pension actuarial losses, funds were £42.3m lower than the previous year. Further details on the performance of the Trust’s investments and our defined benefit pension scheme can be found later in this Finance Review.

The Trust has utilised its income from all sources to continue to deliver on its charitable objectives. The cost of delivering charitable activities continued to suffer associated inflationary increases. Cost increases have been offset by continued efficiencies in operational activities as well as reductions in allocated support costs.

Looking to the future, the cost of fulfilling the Trust’s obligations are increasing due to climate change and the inherent challenge of maintaining a 250-year-old network. Meanwhile government support through our Defra grant agreement is declining in real terms since the previous inflation linking ended in 2021/22. The failure of the Trust’s Defra grant funding to even keep pace with inflation (as measured by CPI) has cost the Trust over £23m so far, and had the grant been subject to inflation it would have been £63.7m in the year ended 31 March 2024, rather than the £52.6m the Trust received. This gap will continue to grow each year that inflation is positive, with the gap accelerating post 2027 under the proposed new arrangements announced in July 2023.

Canal & River Trust Annual Report & Accounts 2023/2024

22

Finance Review

Overview of financial performance

Overview of financial performance
2023/24
£m
2022/23
£m
Income 237.3
225.1
Expenditure on raisingfunds* (43.7)
(41.4)
Net income applied to charitable activities 193.6
183.7
Charitable expenditure (208.6)
(199.5)
Net expenditure before losses on investments (15.0)
(15.8)
Share of expenditure from Joint Ventures (0.1)
(7.0)
Losses on investments (14.3)
(61.9)
Net expenditure (29.4)
(84.7)
Pension actuarial losses (12.9)
(82.4)
Movement in funds (42.3)
(167.1)

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----- Start of picture text -----
Income Charitable expenditure
£237.3m (£208.6m)
£12.2m £9.1m
2023: £225.1m 2023: (£199.5m)
GQ. ©.
See Fig 1. See Fig 3.
Investment and pension
Expenditure on raising funds
valuation losses
(£43.7m)
(£27.2m)
(£2.3m)
©. 2023: (£41.4m) 0.
2023: (£144.3m)
See Fig 2.
Contribution to
Movement in funds
charitable expenditure
(£42.3m)
£193.6m
£9.9m
© 2023: £183.7m 6. 2023: (£167.1m)
----- End of picture text -----

Canal & River Trust Annual Report & Accounts 2023/2024

23

Finance Review

Income

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----- Start of picture text -----
Donations
£6.3m
(2022/23 £5.6m)
Other funding
£26.6m
(2022/23 £24.9m)
Investment
and property
£55.4m
(2022/23 £56.3m)
£237.3m
(2022/23 £225.1m)
Grant
£52.6m
(2022/23 £52.6m)
Utilities and water
development
£44.9m
Boating and mooring
(2022/23 £38.5m)
£51.5m
(2022/23 £47.3m)
----- End of picture text -----

Fig 1. Income £237.3m (2023: £225.1m)

Total income has grown compared to the previous year following successful growth and new contracts in Utilities and water income and inflationary increases applied in the previous year increasing the Boating and mooring income.

Investment and property income slightly reduced in the year as we experienced defaults with property tenants and lower dividends from the diversified investment fund, although the capital growth in the fund has exceeded the prior year.

There has been pleasing growth in the Other funding income that funds specific project activity delivered in the year, and our Donations income has also increased and continues to be an area of focus for future growth. The Defra Grant income remains fixed until expiry of the current agreement in 2027.

Canal & River Trust Annual Report & Accounts 2023/2024

24

Finance Review

Expenditure on raising funds

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----- Start of picture text -----
Recoverable service
charges Voluntary income
£6.4m £4.2m
(2022/23 £5.2m) (2022/23 £3.4m)
Interest payable
£4.4m
(2022/23 £4.4m)
£43.7m Boating and moorings
(2022/23 £41.4m) £14.0m
(2022/23 £12.8m)
Investment and
property
£10.3m
(2022/23 £11.9m) Utilities and water
development
£4.4m
(2022/23 £3.7m)
----- End of picture text -----

Fig 2. Expenditure on raising funds £43.7m (2023: £41.4m)

Total cost of raising funds have increased in the year across all areas, except investment and property where costs are slightly lower than the prior year. Costs incurred in administering Boating and mooring , including customer service and licensing, increased following investment in this area.

Similar increases were seen in the costs associated with Utilities and water to support income growth, and we also increased the number of face to face fundraisers with the associated Voluntary income (i.e. donations) costs rising.

Canal & River Trust Annual Report & Accounts 2023/2024

25

Finance Review

Charitable expenditure

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----- Start of picture text -----
Day to day operations
& customer service
Caring for our waterways
Major infrastructure
works
Operational buildings,
craft, plant & equipment
Funded regeneration
projects
Dredging
Vegetation management
Community engagement
& participation
Museums & attractions
Other
Allocated support costs
0 10 20 30 £m 40 50 60 70
2022/23 2023/24
----- End of picture text -----

Fig 3. Charitable expenditure £208.6m (2023: £199.5m)

Charitable expenditure was once again at record levels with spending on complex and significant activities at our reservoirs and other critical assets increased year on year.

Notable impacts in the year were the continued impacts of inflation, offset by efficiency gains as well as supply management activity. Smaller development and repair activity is included within caring for our waterways costs.

Elsewhere, operational buildings, craft, plant and equipment costs reduced as a result of the strategic review of operational buildings, and funded regeneration project costs increased in line with increased funding received for these projects.

Total charitable expenditure

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----- Start of picture text -----
250
200
150
100
50
0
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
£m
----- End of picture text -----

Fig 4. Charitable expenditure since 2014/15

The chart above shows the Trust's Charitable expenditure over the past 10 years. Charitable expenditure has increased over the 10 year period from an annual average of £150.5m between 2014/15 and 2018/19 to an annual average of £193.1m between 2019/20 and 2023/24. This increase of 28.3% reflects predominantly the increased cost of maintaining our reservoirs and other critical assets in the face of climate change.

Canal & River Trust Annual Report & Accounts 2023/2024

26

Finance Review

Investments

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----- Start of picture text -----
Total investments
£998.7m
(£12.7m)
2023: £1,011.4m
GC.
Property including
Diversified Investment Fund
Joint Ventures
£306.6m
£692.1m
£11.4m
(£24.1m)
2023: £295.2m
@. ©. 2023: £716.2m
----- End of picture text -----

Property investments increased by £2.2m through net acquisition and disposal activity but this was offset by revaluation losses in the year of £31.7m. Joint Venture investments increased by £4.6m following further investment and by a further £0.8m based on returns achieved in the year.

Actual Benchmark* Variance Annual 5 year Annual 5 year Annual 5 year return annualised return annualised return annualised Total return 0.4% 3.3% -1.0% 0.8% 1.4% 2.5% ~~er~~ * MSCI UK all commercial property quarterly benchmark. The Trust’s property investment portfolio produced a total return of 0.4% for 2023/24, 1.4% better than the benchmark. The total return includes negative capital returns of 4.3% comprising 0.3% realised gains from disposals and 4.6% revaluation losses. This compares favourably with the benchmark of 5.5% negative capital returns due principally to a higher weighting in ground rent assets that performed better than the combined market.

The portfolio has also exceeded the 5 year annualised benchmark with total returns of 3.3%, 2.5% better than the benchmark.

The Diversified Investment Fund grew in the year due to unrealised revaluation gains of £14.5m and dividend income of £4.6m. The valuation of the private equity component was based on valuations as at 31 December 2023, adjusted for known transactions and market movements to 31 March 2024. The Trust has withdrawn £7.7m from the fund in the year, comprising £4.6m in dividends and £3.1m of historic gains.

~~er~~ Actual
~~er~~		 Actual
~~er~~		 Benchmark*
~~er~~		 Benchmark*
~~er~~		 Variance
~~er~~		 Variance
~~er~~
Annual
return
~~er~~		 5 year
annualised
~~er~~		 Annual
return
~~er~~		 5 year
annualised
~~er~~		 Annual
return
~~er~~		 5 year
annualised
~~er~~
Total return
~~er~~		 6.6%
~~er~~		 8.1%
~~er~~		 12.3%
~~er~~		 8.3%
~~er~~		 -5.7%
~~er~~		 -0.2%
~~er~~

The total return for the diversified investment fund was 6.6% for the year, 5.7% lower than the market benchmark for the year. This under performance is due to a lower weighting in strong performing public equities as well as some under performance in active management of private equity allocations, returning lower than the benchmark.

The fund delivered 8.1% return over the 5 year period which is close to the benchmark return of 8.3%.

Canal & River Trust Annual Report & Accounts 2023/2024

27

Finance Review

Defined benefit pension scheme

o.

Pension Deficit (£43.0m) (£9.4m) 2023: (£33.6m)

Pension Assets Pension Liabilities £384.6m (£427.6m) (£13.4m) £4.0m 2023: £398.0m 2023: (£431.6m) ©. ©.

Pension actuarial loss

The defined benefit Waterways Pension Fund (WPF) was closed to future benefit accrual on 30 September 2016. The brought forward group pension liability of £33.6m increased to a liability of £43.0m during the year. The value of the scheme investment assets reduced following general market trends and the increases in interest rates. The value of pension liabilities has reduced slightly primarily due to a rise in discount rates over the year.

The Trust has placed investment property within a pension funding partnership, Canal & River Pension Investments LP (the SLP), of sufficient value to meet the minimum collateral required for the WPF trustees to cover any funding shortfall on the WPF of up to £125m when the arrangements mature on 8 July 2031. At the same time, the SLP pays a contribution of £5m each year to the WPF until 31 March 2031. On consolidation, the WPF’s interest in the partnership does not represent a plan asset for the purposes of the Group consolidated financial statements as the underlying assets have been included in the Trust’s investment properties.

The position of the pension scheme for funding purposes is calculated on a different basis. A formal valuation is undertaken once every three years and was last undertaken as at 31 March 2022. As at that date the market value of the Scheme’s assets (excluding members’ additional voluntary contributions) amounted to £658m and the value placed upon the benefits that had accrued to members was £622m. The Scheme was therefore £36m in surplus and 106% funded on an ongoing basis. The market value of the Fund’s investment in the SLP is included within the valuation of the Fund’s assets. As the arrangements could give rise to proceeds above market value at the valuation date, additional contributions were not deemed necessary to eliminate the deficit at 31 March 2022.

Canal & River Trust Annual Report & Accounts 2023/2024

28

Finance Review

Summary Consolidated Balance Sheet

Unrestricted
general
Unrestricted
designated
Restricted
Total 31		 Total 31
fund
funds
funds
March 2024		 March 2023 Variance
£m
£m
£m
£m		 £m £m
Tangible fixed assets 33.4
20.0
-
53.4		 54.3 (0.9)
Investments -
998.7
-
998.7		 1,011.4 (12.7)
Current assets 105.2
5.1
2.0
112.3		 121.1 (8.8)
Current liabilities (86.5)
(0.1)
-
(86.6)		 (89.1) 2.5
Long-term liabilities (2.6)
(150.0)
-
(152.6)		 (153.3) 0.7
Provisions (49.3)
-
-
(49.3)		 (35.6) (13.7)
Pension liability (0.1)
(42.9)
-
(43.0)		 (33.6) (9.4)
Total net assets 0.1
830.8
2.0
832.9		 875.2 (42.3)

Tangible fixed assets have remained consistent year on year, with depreciation charge being offset by new asset additions.

Investments are showing a net reduction of £12.7m, with the main movements being losses of revaluation in investment property of £31.7m being partly offset by gains in revaluation in diversified investments of £16.2m. These investments include investment property of £682.1m. The investment property comprise a variety of property types, across a number of UK regions and are inherently an illiquid asset. The remaining balance is invested in the Trust’s Diversified Investment funds across a variety of investment classes globally, and is therefore exposed to a range of global macroeconomic risks. The liquidity of those funds differs according to the asset class, although it should be noted that a proportion of the fund is retained in cash to facilitate the ordinary operating and investing activities of the fund.

Current assets and current liabilities are both lower than prior year. This is due to timing of income and costs around the year end, which differs from year to year.

Long term liabilities remain consistent, representing the long term bond issued that does not get settled until final redemption.

Provisions have increased as a result of £37.8m new provisions being recognised in the year, partly offset by the utilisation of £21.1m of previously recognised provisions, where work has been carried out on reservoirs. £3.0m of provisions were released in the year, unused as a result of delivery of works being achieved at a lower cost than originally estimated.

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Finance Review

Total reserves

The total reserves of the Trust have reduced from £875.2m at 31 March 2023 to £832.9m at 31 March 2024. This is due to a net expenditure deficit for the year being compounded by realised and unrealised losses on investments of £14.3m and the unrealised loss on revaluation of the defined benefit pension scheme of £12.9m.

2023/24 2022/23
£m £m
Unrestrictedgeneral fund 0.1 3.4
Unrestricted designated funds 830.8 -
Total unrestricted funds 830.9 3.4
Restricted income funds 2.0 1.2
Protected asset fund - 870.6
Total restricted funds 2.0 871.8
Total reserves 832.9 875.2

All charities are required to consider the level of funds they need to hold in reserves. This is based on a number of factors, such as the scale and nature of the charity’s activities, the charity’s age and the stability of its income and expenditure.

Our purpose is to be a trusted guardian of the historic inland waterway network of England and Wales, seeking to enrich places of historic interest or natural beauty permanently for the benefit of the nation in perpetuity. On formation of the Trust in 2012 the Government transferred the Trusteeship of the waterways and related infrastructure assets to the Trust under the terms of a Trust settlement. These infrastructure assets have no market value and cannot be sold but the income earned from them can be applied to the Trust’s charitable purposes.

Maintaining and improving the waterways and the associated structures represents a substantial financial commitment by the Trust, with the required expenditure significantly exceeding the related income generated. Therefore, on formation of the Trust the Government also transferred investment and other non-infrastructure assets to the Trust subject to the conditions of the Defra Grant agreement. The Trust referred to these assets as the Protected asset fund, a fund whose value was required to grow in real terms but the income from which could be used by the Trust for its charitable objectives. The Protected asset fund was recognised as a restricted reserve given the restrictions applied under the terms of the Defra Grant agreement.

In July 2023 the restrictions applied to the Protected asset fund were lifted following revisions made to the Defra Grant agreement. Upon removing the restriction the Protected assets were transferred into the General fund.

The Trustees can designate unrestricted funds for a specific purpose where suitable

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Finance Review

to isolate funds from the General fund and ensure they are not used through normal operations. Where the Trustees believe there is a future obligation to meet using funds held in the General fund, the Trustees can agree to recognise a Designated fund and transfer assets from the General fund to the Designated fund.

During the year the Trustees agreed to recognise a new Designated fund, called the Designated investment fund, following the transfer of the Protected asset fund to the General fund. The previously restricted assets that were held in the Protected asset fund were transferred from the General fund to the Designated investment fund. These assets will be retained to ensure income generation and capital growth in a similar way to the previous requirements of the restricted fund.

The Trust must balance the need to maintain the waterways in a safe condition with the need to have sufficient financial resources to carry on its activities in the long term. The Trustees recognise the option to utilise the assets held within the Designated investment fund to meet this obligation if needed, either as a source of funding or as a source of collateral for borrowing.

The Trusts reserves policy has the objective to grow the real value of the Designated Investment Fund (defined as long term growth in the fund value of at least CPI+1%) whilst generating income to meet the costs of the maintenance and improvement to the waterway infrastructure as they fall due. Income generated and costs incurred are recognised through the General fund, and given the project nature of the large infrastructure costs it is expected that the balance of the General fund can fluctuate year on year. The policy of the Trust is to ensure the unrestricted general fund is managed close to zero over the long term. The General Fund balance at 31 March 2024 was £0.1m. The balance, together with this reserves policy are taken into account alongside expected contributions to charitable expenditure in annual budgeting to establish the resources available for the Trust’s charitable objectives.

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Governance Overview

The Canal & River Trust is a charity registered with the Charity Commission in England and Wales (charity number 1146792). It is also a company limited by guarantee (company number 07807276) and does not have share capital. The Trust’s governing documents are its Articles of Association and Trust Rules which are available on the Trust’s website. Trust Articles of Association

In 2023/24, the Trust had one principal wholly owned trading subsidiary, Canal & River Trading CIC. The Canal & River Trading CIC is a community interest company that conducts trading and investment activities. The main activities are in property development and investing in joint ventures. Profits arising in the Trust’s subsidiaries are donated to the Trust. In turn, the Trust uses the revenues in support of its charitable purpose of maintaining and operating the inland waterway network and conducting other charitable work in relation to inland waterways, such as conservation and education. A summary showing the Trust’s subsidiaries and their results appears in note 16 in these accounts.

In setting objectives and planning our activities the Trustees have given due consideration to the Charity Commission’s guidance on public benefit. Further details on our strategy and public benefit can be found on pages 5 to 13.

As a charitable company, the Trust upholds the highest standards of governance. The Trust applies the Charity Governance Code, which sets out the principles and recommended practice for good governance in charities.

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Governance

The Trust’s governance arrangements are organised as below:

==> picture [400 x 354] intentionally omitted <==

----- Start of picture text -----
Council
Appoints Trustees
Appointments Approves any changes
Committee to Trust Rules
Oversees Council Membership
Recommends Trustees
for appointment
Appoints Regional Advisory Trustees
Board Chairs
Appoints members of Overall responsibility
Welsh Board for the Trust
Set the strategic
direction
Welsh Board
Supports the Trust in Wales
Chief Executive
Day-to-day management
of the Trust
Supported by the
Executive Team
Advisory Groups
Provide advice on specific
6 Regional 6 Regions managementareas of knowledge to
Advisory Boards
Led by the Regional
Provide reach
Directors
Act local
Advise Responsible for Trust
Connect and influence services within an area
Be pioneering and pathfinding
----- End of picture text -----

The Council

Role

The Council consists of the members of the Trust. The Council has several duties including being responsible for appointing and removing Trustees. The role of a Council member is voluntary and unremunerated, although reasonable expenses may be paid.

Membership

The Council may have up to 50 members. During 2023/2024, the Trust held elections for the Council from 13 December 2023 with the results published on the Trust website on the 10 January 2024.

At 31 March 2024, the Council had 38 members drawn from the different communities that use or benefit from the waterways, including boaters, canoeists, walkers, cyclists, heritage, local government, environment, and community groups. Members are elected, co-opted members and nominated by specified organisations.

A full list of Council biographies can be found on the website here: The council | Canal & River Trust (canalrivertrust.org.uk)

Two Council members have been co-opted by the Joint Council & Trustees Appointments Committee to provide the Council with the full complement of skills and expertise required.

The six Regional Advisory Board Chairs sit on Council as members, ex officio, along with one member of Bwrdd Glandŵr Cymru (Welsh Board).

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One Council member is elected as a User Representative Observer to the Waterways Ombudsman Committee. This is a non-voting post, appointed annually. From March 2024, the User Representative Observer put forward by Council was Tracey Clarke, nominated by the Accessible Waterways Association.

Key Activities

The Council ordinarily meets twice a year and met in September 2023 (which was the Trust’s Annual General Meeting) and in March 2024. The September meeting was held in Milton Keynes and the March 2024 Council meeting was held in Liverpool.

The Trust values the experience and input of Council members and continued to maintain contact by ensuring regular reports from the Executive Team on Trust activities were circulated to Council.

Council undertook the following key activities at its September 2023 meeting:

At the March 2024 meeting, Council:

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The Board

Role of the Board

As the principal governing body of the Canal & River Trust, the Board of Trustees (the Board) is responsible for governing or directing the Trust and for approving strategy and policy to deliver the Trust’s charitable objects. The Trustees are also the Directors of the charitable company. The term Trustees has been used throughout this report but refers to both roles. Trustees have ultimate responsibility for the Trust’s funds and assets, including its reputation. The Board has five committees, to which it has delegated specific decisions through its Scheme of Delegation and Terms of Reference:

In addition, three Trustees are members of the Joint Council & Trustees Appointments Committee.

The Board has approved a Scheme of Delegation, which identifies matters delegated to committees or postholders within the Trust. Responsibility for certain matters is retained by the Trustees, which generally fall within four areas:

In addition to the Scheme of Delegation, specific matters are reserved to Committees or individuals by the Trust’s Articles of Association, Trust Rules, and Terms of Reference for Committees.

Board Membership

Trustees are appointed by the Council, which is supported in this process by the Joint Council & Trustees Appointments Committee.

In September 2023 Sue Willkinson and Sarah Whitney (Trustees), terms of office came to an end. At the AGM in September 2023, Sir James Bevan and Chris Fellingham were appointed as Trustees. Biographies for all Trustees can be found on the Trust Internet site. Board of Trustees | Canal & River Trust (canalrivertrust.org.uk)

All Trustees are voluntary, unremunerated, non-Executive appointments. Trustees may be appointed by Council for up to three terms of 3 years, after which they must retire from the Board.

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Trustees are appointed to different committees during their term of office. One Trustee, Janet Hogben, is nominated as one of two Trust non-voting representatives on the Waterways Ombudsman Committee (the other nominee being the Trust’s Legal & Governance Director). In addition, a further Trustee, Ian Peters, has been appointed as the Trust’s nominated Safeguarding Trustee and is a member of the Trust’s Safeguarding Steering Group.

The Trust has appointed a Company Secretary, who Trustees are able to access for advice. The responsibilities of the Chair, Deputy Chair and Executive Team are clearly set out. In addition, each Committee has approved Terms of Reference which are subject to regular review.

Meetings

The Trust Board meets, together with the Executive team, six times a year to review progress and ensure that the Trust is on track to meet its strategic plan and objectives, and to review strategy and business plans as appropriate. Ordinarily, meetings are held around the country, with one meeting held in each of the Trust’s six regions across the financial year.

Board Evaluation

In accordance with the Charity Governance Code, the Trust aims to carry out an external board effectiveness review at least every 3 years – with annual internal reviews in-between.

The Chair undertook a Board Appraisal process supported by Campbell Tickell, the outcome of which was reported to the Board in January 2024 which resulted in a number of actions including the re-balancing of a number of Board committees, a scaling down of Board programmes during the winter months and further improvements to Board papers to clarify Executive recommendations.

Where Trustees could not attend meetings, they received papers and were invited to submit questions/ comments to the Chair in advance of the meeting. The Executive Team were available for discussion, should the Trustees require any further information.

Board Induction and Training

The Trust provides appropriate resources for the Trustees’ professional development. New Trustees during the year had a tailored induction programme. Deep dive sessions are arranged following each Board meeting and also delivered at the relevant committee meeting.

Independence and Conflicts

The Board has ensured there are adequate processes in place to identify and manage conflicts of interests should they arise. All Trustees, co-opted members of committees and Executive Team members complete an annual declaration of interests return and are under a further duty to notify of any conflicts at the start of each meeting.

When considering any conflict, current or potential, Trustees and Co-opted members are able to draw upon the advice of the Company Secretary but the decision on how to manage the conflict rests with the Chair of the Board or Committee.

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Governance

Culture and Values

Trustees recognise the importance of setting high business standards and embedding a positive and high performing culture across the Trust. Trustees, upon appointment, confirm that they will execute their duties to the standard required by law and regulation and will uphold the Trust’s culture and values.

Diversity and inclusion

At the Trust we care passionately for our waterways, and as importantly, for those who look after and use them. We strongly believe that a diverse workforce brings with it a diversity of ideas, thinking, and ways of working which enhances what we do as a Trust. It also increases our ability to engage with the diverse communities in which we operate. To be able to deliver our vision of living waterways transform places and enrich lives, everyone who works here or volunteers with us must be able to be themselves, performing at their best, free from any pressure to conform or be different from how they are.

We have a governance framework for how we manage inclusion and diversity across the Trust. This consists of an Inclusion and Diversity Policy Statement and an inclusion and diversity Strategy “Stronger Together” that we launched this year, with an underpinning three-year action plan.

Where the public sector equality duty applies to our activities, for example boat licensing, we conduct equality impact assessments and have further developed this process this year.

Through its equality, diversity and inclusion policies, the Trust seeks to ensure that all colleagues are treated equally and fairly, with disabled colleagues supported fully. We take active measures via a robust reasonable adjustment process and provide disability-specific resources. We are a Disability Confident Employer, and are committed to taking action to improve how we recruit, retain and develop disabled people.

This year, we launched our inclusion and diversity strategy, Stronger Together, along with a programme of work over the next three years to help us deliver on the ambition set out in the strategy. An inclusion and diversity audit, along with a “deep dive” session at the Board of Trustees early in the year helped shape the strategy. Grouped around the themes of leadership, culture, and representation, we have started to put in place the building blocks, and improve existing processes to improve leadership capabilities, drive culture change, and become a more diverse organisation.

We established suitable governance to drive progress and hold us to account for delivery of the Strategy. This steering committee consists of the Chief Investment Officer (our Executive Sponsor for inclusion and diversity), the People Director, and a Regional Director.

The Executive undertook a programme of inclusive leadership development demonstrating their commitment to leading the change, and we have worked with our partner Inclusive Employers to start the role out of inclusive leadership training for line managers, embedding a module on inclusive leadership in Peopleways, our management development programme.

We have recently delivered an expanded set of diversity questions in our People IT system, helping us to better understand the makeup of our colleagues. This will be pivotal in helping us understand where we need to improve our people processes.

Our inclusion circles (networks run by and for colleagues and volunteers) continue to grow, now numbering 11, each with an Executive Sponsor to platform their work, and to visibly profile inclusion and set the standards of behaviour at the Trust. Through them, we have developed a menopause policy, attended Prides, and held Black History Month community events, as well as other internal awareness raising events such as National Inclusion Week and Race Equality Week. The focus in this area for 2024/25 will be to embed those events more firmly into business processes.

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Finally, with our focus on customers this year, we have published our Towpath Policy, committing to making towpaths accessible where we are able to, updated the accessibility information for customers on our website, progressed the design and development of accessible moorings, and held an event in conjunction with the disabled boaters forum and the newly formed Accessible Waterways Association to highlight our work to make waterways more accessible and how we can work together in the future.

Gender Pay Reporting

The Trust strives to achieve gender equality across all aspects of our employment and monitors the pay gap between male and female employees on an annual basis.

The Trust is required to calculate its gender pay gap annually based on a snapshot date of 5th April. It then has 12 months to publicly report this data meaning that the reporting is often 12 months in arrears.

Our Population

As at April 2024 30% of all Trust employees were female. 57% of all women within the Trust are employed in professional level roles or higher (56% in 2023) and 41% of our senior management population is female (40% in 2023).

Our Gender Pay Gap

As reported in our 2023/24 gender pay gap report, our mean (average) gender pay gap was 5.22%. This means that on average women are paid 5.22% more than men. Further information on the Trust’s gender pay reporting can be found on both the GOV.UK website (search for Canal & River Trust) and the Trust’s website.

Updated with current information (as at snapshot date of April 2023, reported here CANAL & RIVER TRUST gender pay gap data for 2023-24 reporting year – GOV.UK – GOV.UK (gender-pay-gap.service.gov.uk).

Safeguarding

The safeguarding of children, young people and adults at risk is a legal and organisational priority for the Trust. We are committed to identifying and minimising safeguarding risks across all of our activities through appropriate safeguarding training, risk assessments, policies, and processes.

The Trust’s safeguarding commitments are set out in the Policy Statement, which is published on our website. The Trust’s Safeguarding Standard provides key definitions, explains how to raise safeguarding concerns and sets out the rules Trust colleagues and volunteers must follow in order to give effect to our safeguarding commitments. The Safeguarding Standard is reviewed annually and is published on the Trust’s website and intranet.

The Trust’s Safeguarding Steering Group, which is responsible for key strategic safeguarding decisions, is chaired by our Chief Executive and includes the Legal & Governance Director and Chief Operations Officer, as well as the nominated Safeguarding Trustee, Ian Peters. The Trust has a Safeguarding Team, led by our Designated Safeguarding Officer, which is responsible for the effective management of safeguarding cases; regularly reviewing and updating the Safeguarding Policy and associated guidance in line with organisational developments and Charity Commission Guidance; providing advice and guidance; and reporting to the Trust’s Safeguarding Steering Group. The Trust takes seriously any report of suspected harm, abuse or neglect.

The Trust has an Inclusive & Safer Recruitment Standard, which outlines safe and transparent recruitment practices, including a requirement for appropriate Disclosure and Barring Service checks for colleagues and volunteers who work with children and/or adults at risk. The Trust risk assesses criminal record disclosures and has a policy against engaging anyone who is deemed to present an unacceptable level of risk.

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Our Safeguarding Standard, Code of Conduct and Volunteer Handbook set out clear rules and expectations about appropriate standards of behaviour. We promote a culture of openness in which our people feel comfortable to raise concerns any concerns. The Trust conducts an annual colleague engagement survey covering a range of key topics, including an understanding of the importance of safeguarding and knowing how to raise any safeguarding concern. The overall colleague safeguarding engagement score in this year’s survey was 9.4/10. The Trust has a Whistleblowing Standard, which provides clear details about how colleagues and volunteers can raise any concerns about serious wrongdoing. This includes the ability to raise concerns via an independent third-party whistleblowing service provider.

Fundraising

The Canal & River Trust is committed to complying with regulatory standards for fundraising and to ensuring that fundraising is delivered in a manner aligned with our values. We are registered with the Fundraising Regulator and committed to complying with the Code of Fundraising Practice.

During the year, an internal audit review of fundraising compliance observed several areas of good practice. The annual planning and approval process is in place, together with detailed reporting mechanisms to provide the Board with oversight of fundraising activities. One mid-level finding observed that there was no formalised fundraising strategy. Work was already in place on this and the fundraising strategy was signed off by the Board in July 2024.

Our public fundraising work includes:

All fundraising is undertaken under our management. We use creative agencies and sometimes use contracted fundraising suppliers to help us raise funds. All fundraising suppliers to the Canal & River Trust are required to adhere to the Code of Fundraising Practice.

Our website contains our Supporter Promise, which explains how individuals can change the way we contact them and details our complaints policy.

We are committed to transparency and accountability in all our fundraising activities. As part of this commitment, the Canal & River Trust received six fundraising complaints during 2023/24, as compared to three during 2022/23. This data is critical in helping us identify areas for improvement and ensuring that any issues are addressed promptly and effectively.

Canal & River Trust have an organisational standard on ‘Fundraising and People in Vulnerable Circumstances’. This standard specifically refers to our fundraising activity and how we align with the Chartered Institute of Fundraising ‘Treating Donors Fairly Report’ as well as the Fundraising Regulator Code of Practice. We take seriously our responsibility to promote and protect the safety and welfare of vulnerable people. Fundraising also complies with the Canal & River Trust’s Safeguarding Policy Statement which sets out the wider Trust approach.

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Governance

The Executive Team

The Chief Executive reports directly to the Trust Board and has been delegated responsibility for the day-to-day management of the Trust, as well as the implementation of the Trust’s strategy and policies. The Chief Executive is assisted by the Executive Team. There is a clear division of responsibilities between the Trust Board and the Executive Team, with clear role descriptions in place. Biographies of each member of the Executive Team and their areas of responsibility can be found on the Trust internet site. Executive team | Canal & River Trust (canalrivertrust.org.uk)

Joint Council and Trustees Appointments Committee

Role

The purpose of the Committee, as stated in the Trust’s Articles of Association, is to oversee Council membership, help the Council appoint Trustees, appoint Regional Advisory Board Chairs and appoint the Chair of the Bwrdd Glandŵr Cymru.

Membership

The membership of the Committee is determined by the Trust’s Articles, which stipulate there to be an equal number of Council members and Trustees, with a minimum of two drawn from each constituency group. Each member’s appointment to the Committee runs alongside their appointment to Council or Trust Board.

Trustees are recruited to the Committee dependent upon their skills and experience. Council members are recruited to the Committee by an open election amongst eligible members. When undertaking recruitment activities, the Committee takes diversity and inclusion into consideration within the search criteria.

During 2023/24, the membership of the Committee comprised of:

Dame Jenny Abramsky, Trustee ( Chair )

David Orr ( Trust Chair, Committee Member from January 2024 )

Janet Hogben, Trustee

Ian McCarthy, Council Member ( until March 202 4)

Andrew Phasey, Council Member ( reappointed from April 2024 )

Phil Prettyman, Council Member ( until March 2024 )

Scott Martin, Council Member ( appointed from April 2024 )

Trevor Clark, Council Member ( appointed from April 2024 )

Key activities

The Committee meets as and when required. During the 2023/24 financial year, the Committee met four times.

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Succession Planning, Recruitment & Diversity

Council membership is comprised of elected, co-opted and members nominated by organisations identified within the Trust Rules. The Committee does not have a role in the recruitment and appointment of the Executive Team.

Recruitment of Council Members

The Committee does appoint co-opted Council members and Regional Advisory Board Chairs (who are ex-officio members of Council). The constitution of Council membership for elected and nominated members has the effect that the Committee has no direct role in the appointment of these members.

Recruitment of Trustees

During the 2023/24 financial year there were two Trustees appointed. Where a Trustee vacancy occurs, a skills audit is used to inform the search process. The Trust’s focus upon diversity is interwoven through the recruitment process. Vacancies are advertised widely through open advertisements. Individual applications are assessed upon merit and against objective criteria, to identify a short-list of candidates. The preferred candidates were proposed and endorsed by the Council at the September 2023 AGM.

The Trust voluntarily complies with Hampton-Alexander Review ( published in February 2021 ) which has set a target of at least 33% of Board membership to be female. The Trust currently performs above this target, with 36% female members.

Audit & Risk Committee

Role

The main responsibilities of the Audit & Risk Committee are to provide assurance and recommendations to the Trustees on the effectiveness of its governance, internal controls, and risk management framework.

Membership

The membership of the Committee is comprised mostly of independent Trustees and one co-opted member with recent and relevant financial experience. The Chair of the Trust Board is not a member of the Committee.

Sir Chris Kelly, Trustee ( Chair )

Dame Jenny Abramsky, Trustee

Nigel Annett CBE, Trustee

Jennie Price CBE, Trustee

Bronagh Kennedy, Trustee ( from January 2024 )

Robert Milburn, Co-opted Member

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Key Activities

At each meeting the Committee receives and discusses a number of standing items such as, risk reporting and internal audit progress reports. The Committee undertook the following key activities within the year:

During the year the Committee received updates on internal audit recommendations and undertook deep-dive sessions which included the areas of freedom of information compliance and lock gate replacement programming.

Review of Systems of Internal Controls

The Trust Board has overall responsibility for the Trust’s risk management and internal control systems but has delegated specific areas of oversight to the Committee. The Trust undertakes a continual review of risks and internal controls. The Trust Board, via the Audit & Risk Committee, monitors the effectiveness of those internal controls. In addition, assurance is provided by Grant Thornton, the Trust’s appointed internal auditor.

Internal Audit

The Committee undertook the following activities in relation to internal audit:

External Audit

The Committee undertook the following activities in relation to external audit:

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Governance

The Trust has in place a non-audit services policy which safeguards BDO’s independence and objectivity. This is also reflected in the Terms of Reference for the Audit & Risk Committee. The Trust has voluntarily adopted the Financial Reporting Council’s 70% cap on fees for non-audit services provided by the External Auditors. Proposed fees more than £20k require the Committee’s prior approval. Non-audit fees are reported to the Committee, at least annually, to ensure oversight from the Committee.

Risk Management

The Trust maintains a corporate risk register which ranks all known risks according to likelihood and impact (after current mitigation actions are taken into account). The ranking is built up by considering the financial, reputational and operational impact and a specific risk factor relating to loss of life and property.

Risk Tolerance

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Key Strategic Risks

The key 10 risks managed by the Trust in order of appearance on the Trust’s corporate risk register are as follows:

Risk Mitigating Actions
High risk asset failure– a risk of •Full compliance with legislation (e.g. Reservoirs
failure of specific Trust assets Act 1975)
(e.g. reservoirs, embankments)
which could have significant
consequences for public safety,		 •Regular monitoring by specialist reservoir and
other asset engineers
particularly given their water •Implementation of Trust risk-based asset
impounding function management approach
•High risk asset investment programme
•Maintenance and regular review of emergency and
contingency plans
•Modelling of higher risk assets for breach
consequence
•Oversight of the Board Infrastructure Committee
Unsatisfactory grant •Campaign to change the funding decision launched
determination– we have failed
to receive a satisfactory Grant
settlement effective from 2027		 •Continue using long term model to develop
alternative scenarios and long-term strategies
Condition of other operational •Works programme management arrangements
assets– a risk of failure
or deterioration of other		 •Regular progress reporting on works delivery
Trust assets with potential •Asset inspections prioritising safety defects
consequences for public safety
and service delivery		 •Long term asset strategy
Financial sustainability– a •Long term financial planning, with Board oversight
risk of inability of the Trust to
maintain sufficient financial
resources to adequately maintain		 •Annual business planning process, with review of
productivity improvements
and operate the inland waterway •Implementation of the Trust’s Treasury
network and delivery of its Management Policy
charitable objects, particularly
in a high-inflationary economic		 •Regular liquidity forecasting
environment •External audit and oversight of the Trust’s Audit
& Risk Committee

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Risk Mitigating Actions
Safety of general public– •Implementation of the Trust’s Visitor Risk
a risk of failure to provide a safe Assessment Standard and implementation of
environment for visitors of the suitable mitigation measures
Trust’s inland waterway network,
balancing the needs of various		 •Participation in local Water Safety Partnerships
user groups •Active monitoring and reviewing of infrastructure-
related safety incidents involving members of
the public
Safety of boating customers– •Colleague and volunteer training on boater safety
a risk of failure to provide a safe advice
environment for our boating
customers		 •Implementation of Trust navigation standards
•Undertaking visitor risk assessment with boater-
specific mitigation measures
•Participation and sponsorship of the Boat Safety
Scheme
•Partnership working with stakeholder groups, such
as the Trust’s Navigation Advisory Group
Backlog of asset works and •Asset management system in place together with
repairs– potential failure to strategic asset management plan
deliver works programmes
efficiently and effectively		 •Asset inspection procedures and planned
preventative maintenance supported by
programme management governance and
performance management processes

Deteriorating lock gate

Deteriorating lock gate • Lock gate strategy in place condition – limited workshop • Lock Gate Standardisation Group working on capacity and deliver resource, agreeing key design standardisations historic peaks of lock gate replacement coming to end • Delivery and installation of new machinery of life in workshops Water abstraction licensing – • Understanding and modelling of water resource a risk of an inability to secure needs by the Trust’s expert hydrologists water abstraction licences • Close working with the Environment Agency and to provide the Trust’s inland Natural Resources Wales waterway network with sufficient water resource in the light of • Submission of over 150 applications for licences in the removal of exemption for good time prior to statutory deadlines navigation authorities under the • Appeals against unfavourable decisions Water Act 2003 Colleague safety – a risk of • Application of health and safety policies and failure to provide a safe working standards, including risk assessment environment for Trust colleagues • Mandatory health and safety training for all and volunteers colleagues and volunteers • Health and safety Incident reporting and investigation

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Investment Committee

Role

The Investment Committee provides non-executive oversight and assurance for the Board in respect of the Trust’s investments and other commercial activities, supervising the implementation of the Group Investment Policy for the Designated Investment Fund, as well as oversight of its own property and utilities activities.

The Group Investment Policy in place during the financial year contained a long term objective to grow the real value of the Designated Investment Fund (defined as long term growth in the fund value of at least CPI+1%) whilst generating income for spending on the waterways. This was achieved in practice by retaining within the fund any realised or unrealised capital gains and transferring to the General Fund any net income (the so called “natural yield”). It should be noted that the Board approved a change to the Group Investment Policy in July 2024, with the most significant change being to adopt a total return policy which seeks maintain rather than grow the fund’s real value at CPI, in order to facilitate increased Charitable Expenditure from either capital or income returns, particularly on Major Infrastructure Works. In addition, in both the previous and current Group Investment Policy, consideration is given to environmental, social and governance matters in relation to the management of the scheme and the underlying investments, although this is done on a pragmatic basis so as not to have a material impact on the total return of the fund.

Membership

The Committee comprises Trustees and three co-opted members. During the reporting period, the following were members of the Committee:

Sarah Whitney, Trustee ( Chair until September 2023 )

Ian Peters, Trustee ( Chair from September 2023 )

Sir Chris Kelly, Trustee ( from March 2024 )

Chris Fellingham, Trustee ( from September 2023 )

Nigel Annett CBE, Trustee

Nick Ritblat, Co-opted Member

Tim Sketchley, Co-opted Member

Diane Seymour-Williams, Co-opted Member

The Committee met five times during the financial year, in addition to three specific meetings discussing the Group Investment Policy.

Key Activities

At each scheduled meeting, the Committee reviews a number of standing items relating to financial performance and investment updates for property, joint ventures and financial assets, which includes a full quarterly review with the Trust’s investment manager, Partners Capital (operating on a fully delegated mandate subject to the terms of the Trust’s Group Investment Policy). A key focus of the Committee during the year was a detailed review of the Group Investment Policy.

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Governance

During the year, the Committee undertook the following key activities:

Investment Committee’s Performance & Training

A Committee effectiveness review and review of Terms of Reference was undertaken in November 2023. Training for members is available as and when required. During the year a deep-dive sessions were held on financial investments for private equity and illiquid credit.

Remuneration Committee

Role

The Remuneration Committee oversees the remuneration policies for the Trust, with particular focus on the remuneration of the Executive Team and key management personnel. The Committee determines the overall reward and remuneration strategy for the Trust, including any annual or periodic pay award. It approves the design of, and determines targets for, any performance-related pay scheme operated by the Trust for any Executive Directors. The Committee is able to take independent advice, as necessary, to inform those judgements.

When making decisions the Committee also takes into consideration affordability for the Trust, and the fact that the Trust operates in the third sector. The Committee continues to be satisfied that the level of Executive pay is appropriate to the responsibilities of the posts concerned.

Membership

The Remuneration Committee is constituted solely of Trustees. During 2023/24 the following served on the Remuneration Committee during the year:

Janet Hogben, Trustee ( Chair )

Sue Wilkinson, Trustee ( until September 2023 )

Bronagh Kennedy, Trustee

Sir James Bevan, Trustee (f rom January 2024 )

The Executive Team are not present when any decisions regarding their remuneration are made.

The Committee met four times during the financial year.

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Key Activities

The Committee undertook the following key activities:

Infrastructure Committee

Role

The Infrastructure Committee provides oversight, assurance and expert advice in relation to the Trust’s major asset improvement programme and considers issues of delivery and risk together with questions of economy and efficiency.

The Committee advises the Board with regard to:

Membership

The Infrastructure Committee is constituted of independent Trustees (plus one co-opted member). During 2023/2024 the following members served on the Infrastructure Committee:

Nigel Annett CBE, Trustee ( Chair )

Janet Hogben, Trustee

Sir Chris Kelly, Trustee

Jennie Price CBE, Trustee ( until January 2024 )

Sir James Bevan, Trustee ( from Janaury 2024 )

Suzanne Crouch, Co-opted Member

The Committee met four times during the year.

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Governance

Key Activities

The Committee undertook the following key activities:

Bwrdd Glandŵr Cymru (Welsh Board)

The Bwrdd Glandŵr Cymru (“the Bwrdd”) has an advisory remit and takes a strategic perspective in developing the Trust’s work in Wales. It works to ensure the Trust has a good understanding of the needs, issues and opportunities relevant to the waterways of Wales.

The Bwrdd has an important role in working with the Welsh Government and the main all Wales public institutions. It also works closely with the Trust’s Regional Advisory Boards which border Wales.

The membership of the Bwrdd can be found on the Trust’s internet here: Bwrdd Glandŵr Cymru | Canal & River Trust (canalrivertrust.org.uk)

Regional Advisory Boards

The Trust has six Regional Advisory Boards in England which mirror the Trust’s operational regional structure. The Regional Advisory Boards are advisory in nature. They help the Trust use local knowledge, ideas and capacity to build relationships, reach the diverse local communities that we serve and translate national priorities into local initiatives. The membership of the Regional Advisory Boards can be found on the Trust’s website here: Regional Advisory Boards | Canal & River Trust (canalrivertrust.org.uk)

National Advisory Groups

The Trust’s work is supported by National Advisory Groups. These sit outside the formal governance structure of the Trust and are advisory in nature. Their role is to help develop specific aspects of the Trust’s strategy. Members of the National Advisory Groups are drawn for their skills and experience in specific areas. At present the Trust has Advisory Groups in the following areas: Environmental, Fisheries & Angling, Navigation, Youth Engagement and Cultural Heritage. The membership of the National Advisory Groups can be found on the Trust’s website here: National Advisory Groups | Canal & River Trust (canalrivertrust.org.uk)

Trustees’ Responsibilities Statement

The Trustees are responsible for preparing the Strategic Report, the Annual Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

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Governance

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Going Concern

The Trust has a broad range of secure income streams that provide a reliable source of income to fund the Trust’s charitable activities. This income is supplemented by around £50m of grant income from Defra under a Grant Agreement dated 28 June 2012, which is for a fixed term of 15 years. A £10m portion of the Defra grant income is subject to performance conditions.

Having reviewed the operational financial projections, and associated cash flow forecasts, as detailed in note 1.2, the Trustees have concluded that the Trust has sufficient resources to continue funding the charitable activities at the current level of operation for the foreseeable future.

This report, including the Director’s report and the strategic report, was approved by the Board of Trustees on 26 September 2024 and signed on their behalf by:

David Orr CBE

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Governance

Independent Auditor’s Report to Members of Canal & River Trust

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Canal & River Trust (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2024 which comprise the Consolidated statement of financial activities (incorporating the income and expenditure account), the Balance Sheets, the Consolidated statement of cash flows and notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations to be the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities SORP (FRS102), Charities Act 2011, Companies Act 2006, UK tax legislation and the Reservoirs Act 1975.

The Group is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be Health and Safety Act 1974, Water Act 2003, Building Safety Act 2022, Data Protection Act 2018, Employment Rights Act 1996, Code of Fundraising Practice (2019) and the Bribery Act 2010.

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Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be journals, income and key estimates and judgements.

Our procedures in respect of the above included:

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We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

For the work performed by component auditor, we determined the level of involvement needed in order to be able to conclude whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the Group financial statements as a whole. Our involvement with component auditor included the following:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Heather Wheelhouse

(Senior Statutory Auditor)

For and on behalf of BDO LLP, statutory auditor Bristol, UK

Date: 26 September 2024

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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Financial Statements for the year ended 31 March 2024

Consolidated statement of financial activities (incorporating the income and expenditure account) for the year ended 31 March 2024

==> picture [484 x 508] intentionally omitted <==

----- Start of picture text -----
2023/24 2022/23
Unrestricted funds Restricted funds
Protected
General Designated Income asset Funds
fund funds funds fund Total Total
note £m £m £m £m £m £m
Income and endowments
from:
Donations and legacies - - 6.3 - 6.3 5.6
Charitable activities 3 63.1 - 15.4 - 78.5 76.7
Trading activities 4 97.1 - - - 97.1 86.5
Investments 5 52.6 - - 1.7 54.3 55.9
Share of net income from
16 1.1 - - - 1.1 0.4
joint ventures
Total Income 213.9 - 21.7 1.7 237.3 225.1
Expenditure on:
Raising funds 6 (42.4) - - (1.3) (43.7) (41.4)
Charitable activities 7 (187.3) - (20.9) (0.4) (208.6) (199.5)
Share of net expenditure 16 (0.1) - - - (0.1) (7.0)
from joint ventures
Total expenditure (229.8) - (20.9) (1.7) (252.4) (247.9)
Net (expenditure)/income
before gains/(losses) on (15.9) - 0.8 - (15.1) (22.8)
investments
Net gains/(losses) 10 10.2 (24.3) - (0.2) (14.3) (61.9)
on investments
Net (expenditure)/income (5.7) (24.3) 0.8 (0.2) (29.4) (84.7)
Transfers between funds 22 2.4 868.0 - (870.4) - -
Other recognised losses
Actuarial losses on defined
25 - (12.9) - - (12.9) (82.4)
benefit schemes
Net movement in funds (3.3) 830.8 0.8 (870.6) (42.3) (167.1)
Reconciliation of funds:
Total funds brought forward 3.4 - 1.2 870.6 875.2 1,042.3
Total funds carried forward 0.1 830.8 2.0 - 832.9 875.2
----- End of picture text -----

The above amounts represent all gains and losses recognised during the year. All 2023/24 activities are continuing activities.

The accompanying notes on pages 61 to 106 form part of these financial statements.

Financial Statements for the year ended 31 March 2024

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Balance Sheets as at 31 March 2024

Balance Sheetsas at 31 March 2024
Group Canal & River Trust
31 March
31 March
31 March		 31 March
note 2024 2023
2024		 2023
Fixed assets
Tangible assets 12 53.4 54.3
53.4		 54.3
Heritage assets 13 - -
-		 -
Investments:
Property 14 682.1 711.6
536.6		 567.6
Diversified investment funds 15 306.6 295.2
306.6		 295.2
Subsidiaries 16 - -
79.0		 81.1
Joint ventures 16 10.0 4.6
-		 -
1,052.1
1		 1,065.7
975.6		 998.2
Current assets
Stock 1.5 1.7
1.5		 1.7
Debtors: Amounts fallingdue within oneyear 17 63.3 68.7
64.6		 68.0
Debtors: Amounts falling due after more than 17 13.6 12.6
7.9		 7.2
oneyear
Investments 15 10.0 2.7
10.0		 -
Cash at bank and in hand 23.9 35.4
18.4		 31.9
112.3 121.1
102.4		 108.8
Current liabilities
Creditors: Amounts fallingdue within oneyear 18 (86.6) (89.1)
(95.9)		 (102.9)
Net current assets 25.7 32.0
6.5		 5.9
Total assets less current liabilities 1,077.8 1,097.7
982.1		 1,004.1
Creditors: Amounts fallingdue after oneyear 18 (152.6) (153.3)
(152.7)		 (153.5)
Provisions for liabilities 20 (49.3) (35.6)
(49.3)		 (35.4)
Net assets excluding pension fund asset/(liability) 875.9 908.8
780.1		 815.2
Pension fund(liability)/asset 25 (43.0) (33.6)
7.5		 25.0
Net assets including pension fund asset/(liability) 832.9 875.2
787.6		 840.2
Funds
Unrestricted funds
General fund 22 0.1 3.4
3.3		 11.2
Designated funds 22 830.8 -
782.3		 -
830.9 3.4
785.6		 11.2
Restricted funds
Income funds 22 2.0 1.2
2.0		 1.2
Protected asset fund 22 - 870.6
-		 827.8
2.0 871.8
2.0		 829.0
Total Funds 832.9 875.2
787.6		 840.2

The net expenditure after other recognised gains and losses for the year of Canal & River Trust was £52.6m (2023: net expenditure of £153.5m).

Approved and authorised for issue by the Board of Trustees on 26 September 2024 and signed on their behalf by:

INN Qn.

David Orr CBE Chair

26 September 2024 Company number 07807276

The accompanying notes on pages 61 to 106 form part of these financial statements.

Financial Statements for the year ended 31 March 2024

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Consolidated statement of cash flows

for the year ended 31 March 2024

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----- Start of picture text -----
Restated
2023/24 2022/23
£m £m £m £m
Cash flows from operating activities
Net cash used in operating activities (41.7) (66.4)
Cash flows from investing activities
Rental proceeds from property and utilities
39.9 40.7
investments
Purchase of tangible fixed assets (6.7) (7.7)
Purchase of investment property (8.1) (9.5)
Proceeds from sale of tangible fixed assets 0.7 0.2
Proceeds from sale of investment property 10.0 23.6
Proceeds from sale of subsidiary 1.5 -
Withdrawals from diversified funds 9.3 23.4
Loans to joint ventures (9.8) (6.6)
Repayments from joint ventures 5.2 9.2
Dividends from joint ventures 0.2 0.2
Receipts from short term deposits - 0.1
Net cash provided by investing activities 42.2 73.6
Cash flows from financing activities
Interest paid (4.4) (4.4)
Interest received 2.3 2.7
Net cash flows from financing activities (2.1) (1.7)
Change in cash and cash equivalents in the year (1.6) 5.5
Cash and cash equivalents at 1 April 35.4 29.8
Cash and cash equivalents at 31 March 33.9 35.4
----- End of picture text -----

Financial Statements for the year ended 31 March 2024

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a) Reconciliation of net expenditure to net cash used in operating activities

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----- Start of picture text -----
Restated
2023/24 2022/23
£m £m £m £m
Net expenditure (29.4) (84.7)
Adjustments for:
Realised gains on disposals of investment assets (2.0) (2.7)
Net unrealised losses on revaluation of
15.6 64.7
investment assets
Realised losses on disposal of subsidiary 1.2 -
Finance expense 4.4 4.4
Finance income (2.3) (2.7)
Rents from property and utilities investments (40.7) (41.5)
Share of net (gains)/losses from joint ventures (1.1) 6.6
Depreciation 4.8 5.2
Diversified funds investment return:
(4.5) (5.8)
dividend income
Gain on sale of tangible fixed assets (0.4) (0.2)
Difference between payments to defined benefit
(3.5) (6.3)
scheme and amount charged to expenditure
(28.5) 21.7
Decrease/(Increase) in stock 0.2 (0.1)
Decrease/(Increase) in debtors 4.4 (7.3)
(Decrease)/Increase in creditors (2.1) 3.7
Increase/(Decrease) in provisions 13.7 0.3
Net cash used in operating activities (41.7) (66.4)
----- End of picture text -----

The 2022/23 consolidated statement of cash flows included within cash flows from investing activities £19.6m of rental income from property and utilities investments which should have been included within cash flows from operating activities. The comparative amounts have been restated to correct for this misclassification.

Financial Statements for the year ended 31 March 2024

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b) Analysis of changes in net debt

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----- Start of picture text -----
2023/24
Other
At 1 April Cash non-cash At 31 March
2023 flows changes 2024
£m £m £m £m
Cash and cash equivalents
Cash 35.4 (11.5) - 23.9
Funds held on short-term deposit - 10.0 - 10.0
35.4 (1.5) - 33.9
Borrowings
Debt due within one year - - - -
Debt due after one year (150.0) - - (150.0)
(150.0) - - (150.0)
Total net debt (114.6) (1.5) - (116.1)
----- End of picture text -----

2022/23
Other
At 1 April Cash non-cash At 31 March
2022 flows changes 2023
£m £m £m £m
Cash and cash equivalents
Cash 29.8 5.6 - 35.4
**Borrowings **
Debt within oneyear - - - -
Debt due after oneyear (150.0) - - (150.0)
(150.0) - - (150.0)
Total net debt (120.2) 5.6 - (114.6)

Financial Statements for the year ended 31 March 2024

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Notes to the accounts

1. Accounting policies

1.1 Basis of preparation

The financial statements of the Canal & River Trust (‘the Trust’) have been prepared under the historical cost convention, except for the modification to a fair value basis for investment properties and certain financial instruments, as specified in the accounting policies below.

The financial statements have been prepared in accordance with Charities SORP (FRS 102) – Second edition October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Where further clarity beyond FRS102 guidance is required, the relevant IFRS guidance has been consulted. Reference to the appropriate standard has been included in these cases.

The Trust meets the definition of a public benefit entity under FRS 102. The Trust is a Charity registered with the Charity Commission in England and Wales, and a Company limited by Guarantee.

A separate Statement of Financial Activity (SoFA) for the parent company is not presented with the Group financial statements as permitted by section 408 of the Companies Act 2006. The net movement in funds of the parent company is disclosed in note 22 of the financial statements.

1.2 Going concern

The Trust’s annual financial planning process, including financial projections, has taken into consideration the current economic climate, as well as the significant financial resources required in order to maintain and repair the canal network, especially in light of climate change.

The planning process and financial projections have included scenario analysis using most likely case as well as stress testing severe downside scenarios. This confirms that the Trust has sufficient liquidity to withstand a significant reduction in income with little cost mitigation and continue in operation whilst meeting its debt covenants. In reality, where the Trust’s income is materially impacted, costs can in some cases be reduced to offset the reduction in income, which would reduce liquidity requirements even further.

In view of the significant resources available to the Trust, the Trustees consider that there are adequate resources to continue in operation for the foreseeable future, and at least 12 months from the signing of the accounts and audit report. The Trustees have not identified any material uncertainties that would alter this view, and in particular, as at 31 March 2024, they recognise that the Trust had £23.9m in cash and access to £54.5m in liquid funds within 60 days within the Diversified Income Fund. In the longer term, the value of property and non-property assets could fund the activities of the Trust for several years. Accordingly, the Trustees have adopted the going concern basis in preparing the financial statements.

1.3 Significant judgements and sources of estimation uncertainty

Judgements and estimates are continually evaluated and are based on historical experience as well as other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.

1.3.a Pension scheme

As described further within the defined benefit pension scheme policy, a judgement is made regarding the pension scheme’s investment in a subsidiary of the Trust, which is not recognised as a scheme asset within the consolidated financial statements as this is considered to be a non-transferrable financial instrument issued by the Group. An asset is recognised in Canal and River Trust (the entity), as the Trust’s investment in the pension fund is recognised as an investment in the pension scheme accounts, reducing the funding deficit. Judgements and estimates are also made, using actuarial guidance, regarding key assumptions in valuing scheme assets and liabilities, and in recognising a scheme asset at entity level. Note 25 sets out the sensitivities regarding the principal assumptions applied in valuing the assets and liabilities of pension scheme.

Financial Statements for the year ended 31 March 2024

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  1. Accounting policies (continued)

1.3.b Joint ventures

Significant judgement has been required in assessing the carrying values of the Trust’s investments in joint ventures. Judgement is required in determining the carrying value which has been evaluated based on recent accounts, access to joint venture board papers and discussions with our partners.

1.3.c Loan notes

The Trust issued £150m loan notes by way of a private placement in 2018. These loan notes are repayable in Sterling, but some contain an embedded derivative that would be realised should the loan notes be repaid before their due date. The Trust has chosen to adopt IAS 39 to value these loan notes which values the considerably smaller derivative element rather than adopt FRS 102 which would value the entire loan notes. This derivative has been valued at £nil at the year-end (2023: £nil).

1.3.d Useful economic lives of operational fixed assets

As explained further within the tangible fixed assets policy, buildings, plant, machinery and vehicles held by the Trust are depreciated from acquisition based on their useful economic life, to write off the cost of the asset less any residual value. Judgement is required to assess the length of this life, and this is evaluated based on past experience, asset classification and condition reviews. Depreciation rates for classes of assets are reviewed annually to ensure they remain appropriate with reference to external and internal factors, including the level of proceeds (and resulting profit / loss) recognised on disposal of such items.

1.3.e Reservoir provisions

Due to the significant requirement to safely maintain the infrastructure of the network, the Trust routinely accommodates independent reviews of major infrastructure assets to comply with the Reservoirs Act 1975 and to assess requirements for rectification or improvement. Following the reviews the Trust receives reports outlining the requirements for action. As a result of the legal requirements outlined in the reports, or due to the Trust’s constructive obligation as a result of a published intention to rectify breaches or failures, the Trust establishes a project to address the requirements, including an estimate of the likely costs to satisfactory completion. Due to the legal or constructive obligation to carry out some of the recommended works the Trust provides for the cost when the requirements are known and the costs can be reasonably estimated. The provision is estimated at the balance sheet date covering all known requirements at that date. Actual costs will be incurred in future periods and any under or over provision as a result of differences between the estimated costs provided and the actual costs incurred will be recognised in the operating costs in the period they. Due to the uncertainty associated with such estimates, there is a possibility, that on conclusion of open matters at a future date, the final outcome may differ.

1.3.f Property investments

Independent professionally qualified surveyors value the Trust’s investment property in line with the “Red Book” methodology of the Royal Institute of Chartered Surveyors however the valuation is based on judgement. Every five years all properties are externally valued. The top 100 properties by value are valued annually as well as a quarter of all other properties.

1.3.g Lease classification

The Trust’s leasehold agreement with the Royal Armouries leasee is a 999 year lease of land which has 971 years unexpired of its term. At inception this was judged to be an operating lease and has been accounted for as such. This judgement was reached as the lease term is not for the major part of the land’s economic life, the asset does not transfer to the lessee at the end of the lease, nor does the lessee have the option to purchase the land, and the land is not of a specialised nature. In addition, the present value of future lease payments is not roughly equal to the fair value of the land.

Financial Statements for the year ended 31 March 2024

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  1. Accounting policies (continued)

1.4 Basis of consolidation

The Group comprises the Canal & River Trust and its subsidiaries which are set out in note 16 to these financial statements. The principal subsidiaries are Canal & River Trading CIC, a community interest company, and the Canal & River Pension Investments LP (SLP).

Subsidiaries are entities controlled by the Trust. Control exists when the company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The turnover and expenditure of the subsidiaries are included within the consolidated SoFA. The assets and liabilities are included on a line by line basis in the consolidated balance sheet in accordance with FRS 102, section 9.13 ‘Consolidated and Separate Financial Statements.’ The financial statements of all Group companies are prepared using consistent accounting policies.

The Group has a number of contractual arrangements with other parties that represent joint ventures. These joint ventures are established through an interest in a limited company, partnership or other entity. The Group recognises its interest in the entity’s assets and liabilities using the equity method of accounting in accordance with FRS 102 section 15 ‘Investments in Joint Ventures.’ The names of joint ventures, the nature of the business and details of the shares held by the Group are disclosed in note 16 to these financial statements.

Intra-Group balances and transactions, and any unrealised gains arising from intra-Group transactions with joint ventures, are eliminated in preparing the consolidated financial statements. Unrealised gains resulting from transactions with joint ventures are eliminated against the carrying value of the investment in the joint venture.

Waterways Infrastructure Trust (WIT) (Charity number 1146792-2) is a linked charity of Canal & River Trust and is included in the financial statements of the Trust and Group on a branch accounting basis, whereby funds are aggregated. The only assets held by WIT are heritage assets, as disclosed in note 13 to the accounts. The WIT does not have income, expenditure, liabilities or accumulated funds. As heritage assets are held at nil value, the funds of WIT are £nil in these financial statements and separate fund disclosures have therefore not been made.

1.5 Income recognition

iii) Income received from the People’s Postcode Lottery (PPL) is recognised as a donation on receipt.

Financial Statements for the year ended 31 March 2024

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  1. Accounting policies (continued)

1.5.b Charitable activities

Other funding received for restricted purposes is recognised as restricted income when conditions of Trust entitlement are met.

1.5.c Trading activities

1.5.d Investments

Lease incentives granted are recognised as a reduction of rental income. The cost of the incentive is allocated over the lease term unless another systematic basis is representative of the time pattern of the benefit from the use of the leased asset. The lease term is the period for which the lessee has contracted to rent the property. This only includes optional extensions where it is reasonably certain that the lessee will exercise such an option.

Where lease incentives are provided, the fair value of the incentive is accounted for as a debtor and recognised in line with this accounting policy.

Financial Statements for the year ended 31 March 2024

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64

  1. Accounting policies (continued)

1.6 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised when a constructive or legal obligation is created, where outflows are probable and can be reliably measured. Irrecoverable VAT is either charged to the appropriate heading or it is capitalised as appropriate.

1.7 Redundancy and termination payments

Redundancy and termination payments are recognised when there is a demonstrable commitment on an individual or group basis that cannot realistically be withdrawn.

1.8 Support costs

Support costs representing expenditure on administration, financial management, human resources and information systems are allocated to expenditure on raising funds and charitable activities, on the basis of headcount or on the estimated service delivered by the support service or other bases if these are more appropriate.

Governance costs are those associated with the governance arrangements rather than the day-to-day management of the Trust. These include the costs of meetings and associated support costs for the Trustees, Trust Council and Waterway Partnerships. It also includes the costs of internal and external audit and preparing the Trustees’ Report and Accounts. These costs are allocated to expenditure on raising funds and charitable activities based on estimated service usage within each area.

1.9 Tangible fixed assets

Expenditure on the purchase of land and the cost of construction and major improvement of buildings is capitalised. Expenditure on the purchase, addition to and improvement of boats, plant and equipment in excess of £5,000 is also capitalised.

Tangible fixed assets are stated at cost, net of depreciation and any provision for permanent diminution in value. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

1.10 Leased land and buildings, plant and equipment

1.10.a Group as a lessor

Where any part of land and buildings owned by the Trust and used for operational purposes is let out under an operating lease to a third party the part let out is reclassified as an investment property asset and is then held at fair value. The remaining part of the land and/or building occupied by the Trust is treated in the same way as other operational properties which are held at cost and depreciated over their estimated useful lives. Rental income, adjusting for the effect of lease incentives, is recognised on a straight-line basis over the lease term, including any rent-free periods.

Financial Statements for the year ended 31 March 2024

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65

  1. Accounting policies (continued)

1.10.b Group as a lessee

Costs in respect of operating leases are charged on a straight-line basis over the lease term, including any rent-free periods.

1.10.c Grant of long lease over investment property

In transferring property rights for consideration there may be instances where the Trust wishes to retain a level of control over the use of property where this issues onto or borders the waterway. This is achieved through the grant of a finance lease, and profit or loss is recognised at inception of the lease. The freehold reversion, whilst initially an insubstantial value, remains held for future capital growth and is fair valued each year.

In order for a long lease to be treated as a disposal it would be usual for the lease term to be for the major part of the economic life of the property (typically more than 50 years) and at the inception of the lease the present value of minimum lease payments would amount to substantially all of the fair value of the leased property.

1.11 Heritage assets

Heritage assets are assets of the Waterways Infrastructure Trust (WIT) and are aggregated into the financial statements on a branch basis as set out at 1.4. The charity does not consider that reliable cost or valuation information can be obtained for the Trust’s heritage assets. The Waterway Infrastructure is generally around 200 years old and the costs of maintaining the Waterway Infrastructure in a safe and accessible state significantly exceed any income generated from them. The WIT does not consider that any meaningful value can be placed on the Waterways Infrastructure, nor the museum artefacts and archives and therefore does not recognise those assets on its balance sheet. The WIT also considers, in line with section 18.14 of the Charities SORP (FRS 102), that obtaining a meaningful valuation of these assets would not be achievable at a cost commensurate with the benefit to the users of the financial statements. Expenditure to maintain, repair and preserve these assets is charged to the SoFA of Canal & River Trust as incurred.

Further information on the management and preservation of heritage assets is given in note 13 to the financial statements.

The Trust has two classes of heritage assets:

1.11.a Waterways infrastructure

Canal & River Trust maintains inland waterways that include the assets listed in note 13 to these financial statements. These waterway assets are maintained regularly as an integrated network to ensure that the waterways can be used for continuous navigation and access. The assets are referred to as the Waterways Infrastructure and are held under a perpetual trust from Defra, known as The Waterways Infrastructure Trust, which specifies that the waterways are to be held in trust and retained in perpetuity for the following purposes:

Also included within this category are a number of assets which the Trust doesn’t own, but for which

Financial Statements for the year ended 31 March 2024

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1. Accounting policies (continued)

agreements are in place which transfer responsibility for maintenance and inspection to the Trust. The Trust acts as Trustee for these assets.

1.11.b Waterway museum artefacts collections and archives

Canal & River Trust maintains many thousands of heritage artefacts in its collection and many more archive records of the construction and operation of the historic waterways. These items are held for display to the public or in secure storage facilities.

Canal & River Trust incurs significant expenditure in relation to the management and preservation of the heritage assets owned by the WIT. This expenditure is primarily day to day repairs and maintenance but elements of enhancement occur when assets are damaged or modern materials, design, or technology are applied. As this expenditure is incurred by Canal and River Trust to directly deliver its own charitable objects, this expenditure is taken to the SoFA. This spend does not represent a donation or grant to WIT and is not therefore considered for capitalisation in WIT. This reflects the branch accounting approach applied in these accounts to WIT as a linked charity as noted at 1.4.

1.12 Investment properties

Investment properties are measured initially at cost and subsequently at fair value at the reporting date. Valuation movements arising from the annual revaluation exercise are included within “net gains/(losses) on investment” in the SoFA. The Trust accounts for disposals of investment properties upon completion of sale or when the sale is unconditional. Where transfers are made from Operational to Investment Property, these are revalued at fair value on the day of transfer with fair value gains and losses taken to profit or loss.

1.13 Diversified investments

Quoted investments are stated at open market value and unquoted investments are stated at most recent underlying net asset values from fund managers, adjusted for subsequent capital calls or distributions. Both are deemed to represent the fair value of the investments. Income from the investments is recognised as ‘investment income’ in the General Fund. Realised and unrealised investment gains and losses were recognised as gains/losses on revaluation of diversified investments in the Protected Asset Fund, consistent with the treatment in the prior year. Following changes to the DEFRA Grant Agreement in July 2023 subsequent gains and losses were recognised within the unrestricted general fund.

1.14 Investment in subsidiaries

The investment in Canal & River Pension Investments LP is shown at fair value. All other investments in subsidiaries are stated at cost less impairment. All subsidiaries are held at amortised cost apart from Canal & River Pension Investment Limited Partnership which is held at fair value due to the fact that its asset comprises part of the Trust’s investment portfolio and forms the Trust’s pension fund partnership “PFP” (see note 25).

1.15 Impairment

The carrying values of the Trust’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such an indication exists, the asset’s recoverable amount is estimated. The recoverable amount of an asset is the higher of fair value less costs to sell the asset and its value in use. An impairment loss is recognised as additional depreciation of the impaired asset whenever the carrying amount of an asset exceeds its recoverable amount, except in the case of investment property where it is included within recognised gains and losses on investment assets.

1.16 Taxation

As a registered charity, the Canal & River Trust is exempt from taxation of income and gains falling within Part 11 Corporation Tax Act 2010 or Section 256 Taxation of Chargeable Gains Act 1992 to the extent these are applied to its charitable objects.

Financial Statements for the year ended 31 March 2024

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67

  1. Accounting policies (continued)

1.17 Pension schemes

The Trust operates defined benefit and defined contribution pension schemes.

1.17.a Defined benefit scheme

The defined benefit scheme is a multi-employer scheme with the Trust being the principal employer.

The pension liabilities and assets are recorded in line with FRS 102 section 28 ‘Employee Benefits,’ with a valuation undertaken by an independent actuary. FRS 102 measures the value of pension assets and liabilities at the balance sheet date, determines the benefits accrued in the year and the interest on assets and liabilities. The value of benefits accrued is used to determine the pension charge in the SoFA and the net interest cost on the Fund’s assets and liabilities are allocated across the appropriate incoming/outgoing resource categories. The net interest cost reflects application of the discount rate on the scheme’s assets and liabilities over the course of the year.

The change in value of assets and liabilities arising from asset valuation, changes in benefits, actuarial assumptions, or change in the level of deficit attributable to members is recognised in the SoFA within actuarial gains/losses on defined benefit pension schemes.

The resulting pension fund liability or asset is shown on the balance sheet.

An accounting judgement has been taken that the Scheme’s interest in Canal & River Pension Investments LP (known as the ‘SLP’), which is a subsidiary of the Trust, does not represent a plan asset for the purposes of the Group consolidated financial statements because it is a financial instrument issued by the Group and therefore, has not been taken into account in arriving at the Group pension scheme deficit presented in these financial statements.

The Scheme’s interest in the SLP is included in the valuation of the Scheme in the Trust’s company balance sheet. The assumptions required for accounting purposes under FRS 102 differ from the assumptions used for the Scheme’s Technical Provisions funding assumptions and as a result, under FRS 102, the Scheme valuation may result in a surplus position. A pension fund asset will be recognised in accordance with FRS 102 with further clarification sought from IFRIC 14 as under the Scheme trust deed and rules, the Trust has an unconditional right to its share of any surplus following the winding up of the Scheme.

1.17.b Defined contribution scheme

Pension contributions are charged to the SoFA as incurred.

1.18 Provisions

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation because of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. The measurement of these amounts must be known, or reliably estimable, for a provision to be recognised. Due to the uncertainty associated with such estimates, there is a possibility, that on conclusion of open matters at a future date, the final outcome may differ.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are not recognised for future operating losses.

Financial Statements for the year ended 31 March 2024

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68

  1. Accounting policies (continued)

1.19 Financial instruments

The Group has opted to apply the recognition and measurement provisions of IAS 39 (as adopted for use in the UK) and the disclosure requirements of FRS 102 in relation to financial instruments.

Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for any amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset. The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled, or expire. The specific application of these principles in relation to the Trust’s financial instruments means that:

1.20 Fund accounting

Reserve policies are set out on pages 30 to 31 of the Finance Review as well as here in the accounting policies.

The trustees have agreed how the following funds are managed, taking into account best practice and guidance from the Charity Commission.

Financial Statements for the year ended 31 March 2024

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69

  1. Accounting policies (continued)

1.20.a General fund

The general fund comprises unrestricted funds that are accumulated from surpluses of net income that are held specifically to fund the permitted activities of the Trust, the Trust’s other charitable objects, and the Trust’s statutory obligations, in each case net of the support costs and cost of ancillary activities that support, facilitate or promote that expenditure.

1.20.b Designated funds

Designated funds are unrestricted funds that are set aside at the discretion of the trustees for specific purposes. They would otherwise form part of the general reserves. In March 2024 the trustees agreed to create a new designated fund (the designated investment fund) to hold the assets previously held in the Protected asset fund (see 1.20.d below).

1.20.c Restricted income funds

The Restricted income funds are funds that have been donated to the Trust with specific restrictions on how the funds may be applied imposed by donors or by the nature of an appeal. The purpose of each restricted fund is set out in the notes to the financial statements. Restricted donations of less than £1m, unless part of a larger project, are reported in aggregate.

1.20.d Protected asset fund

The Protected asset fund was a restricted reserve subject to the terms of the Defra Grant Funding Agreement (dated 28 June 2012) established when the Protected Assets, as defined in that Grant Agreement, were transferred to the Trust on 2 July 2012 by the UK Government. The fund consisted of these Protected Assets, less the value of the liabilities for the Trust’s borrowings and pension fund liabilities that were secured on the Protected Assets, less any other capital liabilities and creditors.

The Protected Assets were not held on legal Trust; rather they were the corporate property of Canal & River Trust, subject to contractual restrictions imposed by the Grant Agreement which permitted capital to be used for funding revenue in certain circumstances. Following changes to the Grant agreement in June 2023 these restrictions were lifted and the assets held within the Protected asset fund were transferred to the general fund and subsequently, in March 2024, to the designated investment fund.

Financial Statements for the year ended 31 March 2024

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70

2. Comparative consolidated statement of financial activities

==> picture [484 x 503] intentionally omitted <==

----- Start of picture text -----
Restated
2022/23
Unrestricted Restricted
funds funds
General Income Protected Funds
fund funds asset fund Total
note £m £m £m £m
Income and endowments from:
Donations and legacies - 5.6 - 5.6
Charitable activities 3 62.1 14.4 0.2 76.7
Other trading activities 4 86.5 - - 86.5
Investments 5 47.7 - 8.2 55.9
Share of net income from
16 - - 0.4 0.4
joint ventures
Total Income 196.3 20.0 8.8 225.1
Expenditure on:
Raising funds 6 (34.4) - (7.0) (41.4)
Charitable activities 7 (179.3) (20.1) (0.1) (199.5)
Share of net expenditure from 16 - - (7.0) (7.0)
joint ventures
Total expenditure (213.7) (20.1) (14.1) (247.9)
Expenditure before gains
(17.4) (0.1) (5.3) (22.8)
on investments
Net gains/(losses) 10 0.1 - (62.0) (61.9)
on investments
Expenditure (17.3) (0.1) (67.3) (84.7)
Transfers between funds 22 10.0 - (10.0) -
Other recognised losses
Actuarial losses on defined
25 - - (82.4) (82.4)
benefit schemes
Net movement in funds (7.3) (0.1) (159.7) (167.1)
Reconciliation of funds:
Total funds brought forward 10.7 1.3 1,030.3 1,042.3
Total funds carried forward 3.4 1.2 870.6 875.2
----- End of picture text -----

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

71

  1. Income from charitable activities
2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Waterwayinfrastructure income 8.7
-
-
-
8.7
Thirdpartyfundedprojects 0.6
-
15.4
-
16.0
Museums and attractions 1.2
-
-
-
1.2
Third party income from charitable
activities		 10.5
-
15.4
-
25.9
Defragrant funding 52.6
-
-
-
52.6
Total income from charitable
activities		 63.1
-
15.4
-
78.5
Restated
2022/23
Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Waterwayinfrastructure income 7.8 - - - 7.8
Thirdpartyfundedprojects 0.6 - 14.4 - 15.0
Museums and attractions 1.1 - - 0.2 1.3
Third party income from charitable
activities		 9.5 - 14.4 0.2 24.1
Defragrant funding 52.6 - - - 52.6
Total income from charitable
activities		 62.1 - 14.4 0.2 76.7

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

72

4. Income from trading activities

2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Boatingand moorings 51.5
-
-
-
51.5
Utilities and water development 44.9
-
-
-
44.9
Other tradingincome 0.7
-
-
-
0.7
Total income from trading activities 97.1
-
-
-
97.1
2022/23
Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Boatingand moorings 47.3 - - - 47.3
Utilities and water development 38.5 - - - 38.5
Other tradingincome 0.8 - - - 0.8
Total income from trading activities 86.5 - - - 86.5

5. Income from investments

2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Investment Propertyincome 41.7
-
-
1.6
43.3
Dividends from diversified
investment fund		 4.6
-
-
-
4.6
Other investment income 4.1
-
-
-
4.1
Interest receivable 2.2
-
-
0.1
2.3
Total income from investments 52.6
-
-
1.7
54.3
2022/23
Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Investment Propertyincome 36.8 - - 6.3 43.1
Dividends from diversified
investment fund		 6.0 - - - 6.0
Other investment income 4.1 - - - 4.1
Interest receivable 0.8 - - 1.9 2.7
Total income from investments 47.7 - - 8.2 55.9

Financial Statements for the year ended 31 March 2024

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73

  1. Expenditure on raising funds
2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Voluntaryincome 4.2
-
-
-
4.2
Boating and moorings 14.0
-
-
-
14.0
Utilities and water development 4.4
-
-
-
4.4
Investment andpropertyincome 9.0
-
-
1.3
10.3
Interestpayable 4.4
-
-
-
4.4
Recoverable service charges 6.4
-
-
-
6.4
Total expenditure on raising funds 42.4
-
-
1.3
43.7

2022/23

2022/23
Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Voluntaryincome 3.4 - - - 3.4
Boatingand moorings 12.8 - - - 12.8
Utilities and water development 3.7 - - - 3.7
Investment andpropertyincome 4.9 - - 7.0 11.9
Interestpayable 4.4 - - - 4.4
Recoverable service charges 5.2 - - - 5.2
Total expenditure on raising funds 34.4 - - 7.0 41.4

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

74

  1. Expenditure on charitable activities
2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Waterway operation, maintenance
and repair		 178.0
-
5.5
-
183.5
Third party funded regeneration
projects		 4.9
-
15.4
-
20.3
Museums and attractions 3.3
-
-
-
3.3
Net interest cost onpension liabilities 1.1
-
-
0.4
1.5
Total expenditure on charitable
activities		 187.3
-
20.9
0.4
208.6
Restated
2022/23
Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Waterway operation, maintenance
and repair		 172.2 - 5.7 - 177.9
Third party funded regeneration
projects		 3.7 - 14.4 - 18.1
Museums and attractions 3.4 - - 0.1 3.5
Total expenditure on charitable
activities		 179.3 - 20.1 0.1 199.5

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

75

  1. Support costs
2023/24 2023/24
Governance
£m		 Finance & IT
£m		 Human
Resources
£m		 Other
£m		 Total
£m
Expenditure on raisingfunds 0.1 1.7 0.2 0.7 2.7
Expenditure on charitable activities 0.6 11.3 3.3 3.6 18.8
Total support costs 0.7 13.0 3.5 4.3 21.5
2022/23
Human
Governance Finance & IT Resources Other Total
£m £m £m £m £m
Expenditure on raisingfunds 0.1 1.3 0.2 0.6 2.2
Expenditure on charitable activities 0.6 11.5 3.0 3.6 18.7
Total support costs 0.7 12.8 3.2 4.2 20.9
2023/24
£000
2022/23
£000
Feespayable to the auditors of Canal & River Trust:
in respect of the charityaudit 320
320
in respect of the subsidiaryaudits 30
30
Other non-audit services:
in respect of taxation compliance -
6
Feespayable to other auditors of subsidiarycompanies:
in respect of audit 23
13
in respect of taxation compliance 7
7
in respect of taxation advisory -
3
Total feespayable to auditors 380
379

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

76

  1. Employee costs

No remuneration was paid to any member of the Board of Trustees.

Trustee expenses include the reimbursement by the Trust of costs incurred by its trustees in carrying out their duties and similar payments made by the Trust directly to third parties on their behalf. During the year there was £10,795 incurred by 13 trustees for travel, subsistence and accommodation (2022/23: £11,900 incurred by 12 trustees for travel, subsistence and accommodation).

The average number of persons employed during the year on a full-time equivalent basis was:

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Group
2023/24 2022/23
Number Number
Investment management 57 61
Engineering, projects and repairs 520 508
Operations, customer service and engagement 975 1,001
Museums and attractions 29 37
Support functions 146 141
Total number of persons 1,727 1,748
----- End of picture text -----

The average number of employees is calculated using the full-time equivalent method. The actual average number of employees is 1,796 (2023: 1,810).

Total employment costs were:

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----- Start of picture text -----
Group
2023/24 2022/23
£m £m
Wages and salaries 63.1 61.9
Car cash allowances 3.2 3.1
Social security costs 6.4 6.5
Defined benefit pension costs (see note 25) 0.8 0.9
Defined contribution pension costs 5.2 5.0
Redundancy and termination costs 0.4 0.4
Total employment costs 79.1 77.8
----- End of picture text -----

Redundancy and termination payments of £0.4m (2022/23: £0.4m) were made during the year. These payments were made at the point the employee’s contract was terminated and were fully paid at the year end.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

77

9. Employee costs (continued)

The number of employees whose gross remuneration (including redundancy payments made) and taxable benefits, but not employer pension costs paid during the year, exceeded £60,000 and fell within the following ranges were:

ranges were:
2023/24 2022/23
Including
Excluding		 Including Excluding
redundancy
redundancy		 redundancy redundancy
payments
payments		 payments payments
Number
Number		 Number Number
£60,000-£70,000
69
70		 41 41
£70,001-£80,000
31
29		 22 22
£80,001-£90,000
14
14		 13 13
£90,001-£100,000
11
11		 6 6
£100,001-£110,000
7
6		 7 6
£110,001-£120,000
2
1		 1 1
£120,001-£130,000
3
3		 2 2
£150,001-£160,000
1
1		 1 1
£170,001-£180,000
2
2		 1 1
£180,001-£190,000
-
-		 1 1
£210,001-£220,000
-
-		 1 1
£220,001-£230,000
1
1		 1 1
£240,001-£250,000
1
1		 - -
142
139		 97 96

Contributions from the Trust to the defined contribution pension scheme in respect of 139 of the 142 (2022/23: 94 of the 97) higher paid employees amounted to £905,400 (2022/23: £637,517).

Key management personnel

The key management personnel are the Trustees and Executive team (listed on page 106). The remuneration costs relating to key management personnel were:

2023/24 2022/23
£m £m
Salary(including pensions) 1.7 1.5
Social securitycosts 0.2 0.2
Total 1.9 1.7

There were two additional members appointed to the executive committee in the 2022/23 year.

The remuneration during the year of the Chief Executive comprised a salary of £197,483 (2022/23: £195,750), pension allowance of £17,023 (2022/23: £16,874), car allowance of £9,768 (2022/23: £9,768) and benefits in kind of £2,606 (2022/23: £2,111), totalling £226,880 (2022/23: £224,503).

There was one employee whose remuneration during the year was higher than the Chief Executive. The Chief Investment Officer, received a salary of £179,292 (2022/23: £177,400), pension allowance of £15,455 (2022/23: £15,292), car allowance of £9,768 (2022/23: £9,768), performance related pay related to the 2022/23 year of £33,896 (2022/23: £8,820) and benefits in kind of £4,930 (2022/23: £3,195), totalling £243,341 (2022/23: £214,475).

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

78

  1. Net gains/(losses) on investments
2023/24
Unrestricted
general
fund
£m
Unrestricted
designated
funds
£m
Restricted
funds
£m
Protected
asset fund
£m
Funds
Total
£m
Realised gains on disposal of
investment assets		 2.3
-
-
0.1
2.4
Realised losses on disposal
of subsidiary		 (1.2)
-
-
-
(1.2)
Unrealised losses on revaluation of
investmentproperty		 -
(31.7)
-
-
(31.7)
Unrealised gains on revaluation of
diversified investments		 9.1
7.4
-
(0.3)
16.2
Netgains/(losses) on investments 10.2
(24.3)
-
(0.2)
(14.3)

2022/23

Unrestricted Unrestricted
general designated Restricted Protected Funds
fund funds funds asset fund Total
£m £m £m £m £m
Realised gains on disposal of
investment assets		 - - - 2.8 2.8
Realised gains on disposal of
tangible fixed assets		 0.1 - - - 0.1
Unrealised losses on revaluation of
investmentproperty		 - - - (61.8) (61.8)
Unrealised losses on revaluation of
diversified investments		 - - - (3.0) (3.0)
Netgains/(losses) on investments 0.1 - - (62.0) (61.9)

11. Taxation

The Canal & River Trust is a registered charity and as such is entitled to certain tax exemptions. The Trust is entitled to exemptions on income and profits from investments, and surpluses on any trading activities carried out in furtherance of the Charity’s primary objectives (provided these profits and surpluses are applied solely for charitable purposes). It is expected that the Trust’s subsidiaries will gift all their profits to the Trust, normally resulting in no tax liability.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

79

12. Tangible fixed assets

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----- Start of picture text -----
Boats, vehicles,
Operational land
plant and
and buildings
equipment
Freehold Leasehold Total
Group and Canal & River Trust £m £m £m £m
Cost
At 1 April 2023 27.4 0.3 63.7 91.4
Additions 0.5 0.1 6.1 6.7
Transfers to Investment property (4.0) - - (4.0)
Disposals - - (2.1) (2.1)
At 31 March 2024 23.9 0.4 67.7 92.0
Depreciation
At 1 April 2023 5.3 - 31.9 37.2
Charge for the year 0.6 - 4.2 4.8
Transfers to Investment property (1.6) - - (1.6)
Disposals - - (1.8) (1.8)
At 31 March 2024 4.3 - 34.3 38.6
Net book value
At 1 April 2023 22.1 0.3 31.8 54.3
At 31 March 2024 19.6 0.4 33.4 53.4
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13. Heritage assets

Heritage assets are defined as tangible property with historical, artistic, scientific, technological, geophysical or environmental qualities which are held and maintained principally for their contribution to knowledge and culture. The assets within the Waterways Infrastructure Trust and the museum artefact collection and archives fall within this definition and are accordingly categorised as heritage assets.

Waterways heritage is for everyone and the heritage within the Trust’s care is free to access and use. It provides an everyday, local connection to the past; a ‘living museum without walls’.

Britain’s network of inland waterways is one of the largest and most important heritage resources in the country. It is the prime responsibility of the Trust, as custodian, to ensure that the value of this precious, irreplaceable inheritance is understood, managed and protected – thereby securing the longevity of our historic waterways for the benefit and wellbeing of canal and towpath users alike and indeed, the benefit of future generations.

Land & buildings – the canals and rivers comprised within the Waterways Infrastructure Trust

The Canal & River Trust is the guardian of around 2,000 miles of historic waterways across England and Wales.

Many of our waterways were built at the height of the industrial revolution and are home to 2,701 listed structures and 46 scheduled ancient monuments.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

80

  1. Heritage assets (continued)

The Trust is a trustee of The Waterways Infrastructure Trust and the settlement agreement between the parties contains a detailed working definition of the infrastructure property. In summary the infrastructure property includes all land and infrastructure which is necessary to (a) inland navigation on a waterway; or (b) public access to, and use of, a towpath. The following is a selection of the main principal assets (as defined by the Trust’s Asset Management Plan) included in the infrastructure property:

31 March 2024 31 March 2023
Asset description Length/number Length/number
Canals 1,568 miles 1,568 miles
Rivers 345 miles 345 miles
Feeders 120 miles 120 miles
Towpaths 1,710 miles 1,710 miles
Aqueducts (1) 277 279
Bridges – Accommodation (2) 1,642 1,645
Bridges – Public Road (3) 872 872
Bridges – Turnover (4) 454 452
Culverts (5) 1,941 1,942
Major cuttings (6) 826 828
Major embankments (7) 781 781
Docks 3 3
Drydocks (8) 54 55
Permitted waste sites (9) 16 18
Locks 1,579 1,579
Pumpingstations (10) 68 69
Reservoirs 71 71
Sluices (11) 533 534
Stop/Safety/Flood Gates (12) 69 70
Tunnels (13) 57 55
Canal weirs (14) 665 666
River weirs (15) 128 129
Weir-ed locks 83 83
Boat lifts (Navigation) 1 1

The following are other classifications of the infrastructure assets many of which are also recorded in the principal assets listed above:

Historic battlefields 6 6
Listed buildings (16) 2,701 2,706
Scheduled ancient monuments 46 46
Sites of Special Scientific Interest (SSSIs) 63 63

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

81

  1. Heritage assets (continued)

The records of the assets managed by the Trust are maintained by the Infrastructure and Property team using a detailed database that captures the asset type as well as detail regarding the asset location, dimensions and condition that is used in the ongoing planned maintenance, repair and improvement program. Through the general management of the large network, when these assets are physically visited the records are updated accordingly, which can include changes in classification of existing assets, removal of assets decommissioned or the addition of assets not previously recognised. This is an ongoing exercise and changes in the reported numbers are expected year on year.

Museum artefact collections and archives

The Trust cares for many thousands of artefacts which are designated by the Arts Council as of national significance. The collection contains over 80 historic boats – many of which are listed on the Historic Ships Register – tools, machinery, memorabilia, decorative arts, paintings and social history items. These items are held for public display at the National Waterways Museums (Ellesmere Port & Gloucester) and other Canal & River Trust attractions and locations.

The Waterways Archive consists of historic records, images, maps, plans, oral history, film and digital media and has historical, scientific and technological significance.

Both collections are maintained by the Trust to preserve the culture, knowledge and enjoyment of our inland waterways for the public benefit today and for generations to come.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

82

  1. Investment property

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----- Start of picture text -----
Group Canal & River Trust
Freehold Leasehold Total Freehold Leasehold Total
£m £m £m £m £m £m
Carrying value (fair value)
At 1 April 2023 637.0 74.6 711.6 493.3 74.3 567.6
Additions 7.8 0.3 8.1 7.8 0.3 8.1
Transfers from Operational 2.4 - 2.4 2.4 - 2.4
property
Disposals (8.2) (0.1) (8.3) (8.1) (0.1) (8.2)
Revaluation (26.4) (5.3) (31.7) (28.1) (5.3) (33.4)
At 31 March 2024 612.6 69.5 682.1 467.3 69.2 536.5
----- End of picture text -----

The investment properties have a historical cost of £596.0m (2022/23: £596.9m) and accumulated depreciation of £147.0m (2022/23: £133.7m).

Investment properties are valued annually and included at valuation on an open market basis. Avison Young, a regulated firm of Chartered Surveyors, carried out a valuation of the top 100 properties by value as well as a quarter of all other properties (together approximately 96% by value in total) as at 31 March 2024. The remaining properties were valued by qualified surveyors employed by the Trust.

Valuations are carried out in accordance with the guidance set out in the Royal Institute of Chartered Surveyors (RICS) Global Valuation Standards effective from 31 January 2022 (the Red book) and the RICS UK national supplement effective from 14 January 2019. The properties have been valued on the basis of Fair Value as adopted by the International Accounting Standards Board (IASB) in IFRS 13 and accepted as a definition by the RICS Global Valuation Standards effective from 31 January 2022: “The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.” The properties have been valued individually and not as a portfolio.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

83

  1. Diversified investment funds

a) Movement on diversified income funds

Group and Canal & River Trust

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----- Start of picture text -----
Non-property Unrestricted
income portfolio income fund Total
2023/24 2022/23 2023/24 2022/23 2023/24 2022/23
£m £m £m £m £m £m
At 1 April 295.2 289.9 - 25.9 295.2 315.8
Withdrawals (7.7) (11.5) - (10.2) (7.7) (21.7)
Transfers - 15.7 - (15.7) - -
Dividend income 4.6 5.8 - - 4.6 5.8
Investment management costs (1.7) (1.7) - - (1.7) (1.7)
Revaluation 16.2 (3.0) - - 16.2 (3.0)
At 31 March 306.6 295.2 - - 306.6 295.2
----- End of picture text -----

b) Disclosure of asset classes within diversified income funds

Group and Canal & River Trust

Group and Canal &
River Trust
Non-property
income portfolio
31 March
2024
£m
31 March
2023
£m
Multi asset funds 83.4
87.6
Bonds 2.2
2.4
Private debt 65.5
66.7
Credit 7.9
3.0
Global equities 19.0
17.7
Private equityfunds 113.3
108.2
Absolute return 4.3
2.9
Cash 11.0
6.7
At 31 March 306.6
295.2

c) Current asset investments

Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
31 March 2023
31 March 2024		 31 March 2023
£m
£m
£m		 £m
Funds held on short-term
deposit		 10.0
2.7
10.0		 -

Current asset investments represent funds held by the Trust which are not for the purposes of long-term investment return, but instead complement cash holdings used for ordinary operating and investing activities.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

84

  1. Investments

Subsidiaries

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----- Start of picture text -----
Canal & River Trust
2023/24 2022/23
£m £m
Investments in subsidiaries:
At 1 April 81.1 94.1
Fair value adjustment for investment in the SLP - (10.1)
Impairment of investment in subsidiaries - (3.1)
Disposals of investment (2.0) -
Other adjustments (0.1) 0.2
At 31 March 79.0 81.1
----- End of picture text -----

All subsidiaries are held at amortised cost apart from Canal & River Pension Investments Limited Partnership which is held at a fair value of £24.4m (2022/23: £24.4m).

The contribution of subsidiary companies to the Trust’s funds in the year to 31 March 2024 was as follows:

Company Net income
before other
recognised
gains and
Net assets/
(liabilities) at
number Income
£m
Expenditure
£m
losses
£m
31 March 2024
£m*
Canal & River Trading CIC 8069602 0.4
(0.2)
0.2
36.6
Canal & River Pension
Investments LP (SLP)		 SL010965** 6.2
(0.1)
6.1
84.9
Canal & River Pension
Partner Limited		 SC426937 -
-
-
59.2
Other minor subsidiaries -
-
-
(1.9)
6.6
(0.3)
6.3
178.8

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

85

  1. Investments (continued)

The contribution of subsidiary companies to the Trust’s funds in the year to 31 March 2023 was as follows:

Net income
before other
recognised Net assets/
Company gains and (liabilities) at
number Income Expenditure losses* 31 March 2023
£m £m £m £m
Canal & River Trading CIC 8069602 0.5 (0.4) 0.1 34.9
Canal & River Pension
Investments LP (SLP)		 SL010965** 6.1 - 6.1 84.4
Canal & River Pension Partner
Limited		 SC426937 - - - 59.2
Canal & River Reinsurance
Designated Activity Company		 384229 - - - 2.5
Other minor subsidiaries - - - (1.9)
6.6 (0.4) 6.2 179.1

** Limited partnership registration number.

The above subsidiaries are wholly owned by the Trust and are registered and operate within the United Kingdom, with the exception of Canal & River Reinsurance Designated Activity Company which is registered in and operates in the Republic of Ireland and was disposed of during the year, giving rise to a loss on disposal of £1.2m.

Joint ventures

Joint ventures
Investments in joint ventures: Group
2023/24
£m
2022/23
£m
At 1 April 4.6
14.0
Loans advanced 9.8
6.6
Loans repaid (5.2)
(9.2)
Share ofprofits 1.1
0.4
Share of losses (0.1)
(7.0)
Dividendspaid (0.2)
(0.2)
At 31 March 10.0
4.6

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

86

  1. Investments (continued)

The Group’s share of assets and liabilities of joint ventures, which are included in the consolidated financial statements, are as follows:

2023/24 2022/23
£m £m
Fixed assets 1.5 2.4
Current assets 23.1 15.0
Share ofgross assets 24.6 17.4
Current liabilities (14.6) (12.8)
Share ofgross liabilities (14.6) (12.8)
Share of net assets 10.0 4.6

The Group’s share of income from joint ventures was £20.3m (2023: £24.7m) and share of expenditure was £19.2m (2023: £31.3m). All income arises from investment in property developments.

All joint ventures are unlisted and are registered and operate in the United Kingdom. Apart from Roundhouse Birmingham (held in the Trust), all investments in joint ventures are held in Canal & River Trading CIC, a wholly owned subsidiary of the Trust and all have year ends of 31 December.

The profit and loss for the year is calculated based on financial statements prepared by the joint ventures adjusted using management accounts. The Trust’s share of profit and loss for the year of each joint venture was as follows:

Equity
Profit/(loss) interest
for the year held*
£m % Main activity
Joint ventures
Waterside Places (General Partner) Limited 1.0 50 Propertydevelopment
H2O Urban LLP 0.1 50 Propertydevelopment
Paddington Basin Business Barges Ltd - 49 Office management
Roundhouse Birmingham (0.1) 50 Heritage attraction operation

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

87

  1. Debtors

Amounts falling due within one year

Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
£m
31 March 2023
£m
31 March 2024
£m		 31 March 2023
£m
Trade debtors
33.9
36.2
33.8		 34.4
Prepayments and accrued income
23.4
26.5
24.6		 27.6
Other debtors
6.0
6.0
6.2		 6.0
Total debtors due within oneyear
63.3
68.7
64.6		 68.0

Amounts falling due after more than one year

Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
31 March 2023
31 March 2024		 31 March 2023
£m
£m
£m		 £m
Prepayments and accrued income
2.7
2.7
2.7		 2.7
Other debtors
10.9
9.9
5.2		 4.5
Total debtors due after more than
oneyear
13.6
12.6
7.9		 7.2

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

88

  1. Creditors

Amounts falling due within one year

Group Canal & River Trust Canal & River Trust
31 March 2024
£m
31 March 2023
£m
31 March 2024
£m		 31 March 2023
£m
Trade creditors 13.9 9.6
13.9		 9.6
Accruals 17.3 23.6
14.8		 21.0
Deferred income (note 19) 47.6 46.5
46.2		 45.1
Other amounts owed to Group
undertakings		 - -
13.6		 17.9
Taxation and Other Social Security 3.2 2.9
2.9		 2.9
Other creditors 4.6 6.5
4.5		 6.4
Total creditors due within oneyear 86.6 89.1
95.9		 102.9

Amounts falling due after more than one year

Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
£m
31 March 2023
£m
31 March 2024
£m		 31 March 2023
£m
Loan notes
150.0
150.0
150.0		 150.0
Deferred income (note 19)
2.0
2.6
2.0		 2.6
Other creditors
0.6
0.7
0.7		 0.9
Total creditors due after more than
one year
152.6
153.3
152.7		 153.5

£150.0m (2023: £150.0m) of creditors fall due after more than five years.

The Trust holds a £150.0m private placement of loan notes to aid its broader investment strategy. The notes are repayable in three £50.0m tranches in 2043, 2048 and 2053 with respective fixed interest rates of 2.85%, 2.83% and 3.01%.

The private placement loan notes are considered to be non-basic as they include an embedded derivative under the scope of IAS 39. The embedded derivative is designated as a financial instrument at fair value through profit and loss (FVTPL) rather than being valued at historic cost less impairment.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

89

  1. Deferred income

Group

Group
At 1 April 2023 Released
Deferred
At 31 March 2024
£m £m
£m
£m
Rental income in advance 22.2 (22.2)
22.9
22.9
Boat licences and moorings in advance 21.1 (21.1)
22.3
22.3
Other deferred income 5.8 (4.3)
2.9
4.4
Total current and long term 49.1 (47.6)
48.1
49.6
Group
At 1 April 2022 Released
Deferred		 At 31 March 2023
£m £m £m £m
Rental income in advance 21.2 (20.4) 21.4 22.2
Boat licences and moorings in advance 19.6 (18.5) 20.0 21.1
Other deferred income 5.7 (4.6) 4.7 5.8
Total current and long term 46.5 (43.5) 46.1 49.1

Canal & River Trust

Canal & River Trust
At 1 April 2023 Released
Deferred
At 31 March 2024
£m £m
£m
£m
Rental income in advance 20.8 (20.2)
20.6
21.2
Boat licences and moorings in advance 21.1 (21.1)
22.3
22.3
Other deferred income 5.7 (5.3)
4.3
4.7
Total current and long term 47.6 (46.6)
47.2
48.2
Canal & River Trust Canal & River Trust
At 1 April 2022 Released Deferred At 31 March 2023
£m £m £m £m
Rental income in advance 19.8 (19.0) 20.0 20.8
Boat licences and moorings in advance 19.6 (18.5) 20.0 21.1
Other deferred income 5.7 (4.6) 4.6 5.7
Total current and long term 45.1 (42.1) 44.6 47.6

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

90

  1. Provisions

Group

At 1 April At 31 March
2023 Transfered Paid Charged Released 2024
£m £m £m £m £m £m
Reservoirprovision 30.7 - (20.1) 35.8 (1.1) 45.3
Otherprovisions 4.9 - (1.0) 2.0 (1.9) 4.0
35.6 - (21.1) 37.8 (3.0) 49.3
Group
At 1 April At 31 March
2022 Transfered Paid Charged
Released
2023
£m £m £m £m £m £m
Reservoirprovision 29.5 (1.7) (17.9) 21.2 (0.4) 30.7
Otherprovisions 5.8 1.7 (1.7) 2.4 (3.3) 4.9
35.3 - (19.6) 23.6 (3.7) 35.6

Canal & River Trust

At 1 April At 31 March
2023 Transfered Paid Charged Released 2024
£m £m £m £m £m £m
Reservoirprovision 30.7 - (20.1) 35.8 (1.1) 45.3
Otherprovisions 4.7 - (0.8) 2.0 (1.9) 4.0
35.4 - (20.9) 37.8 (3.0) 49.3
Canal & River Trust
At 1 April At 31 March
2022 Transfered Paid Charged Released 2023
£m £m £m £m £m £m
Reservoirprovision 29.0 (1.2) (17.9) 21.2 (0.4) 30.7
Otherprovisions 5.6 1.2 (1.7) 2.9 (3.3) 4.7
34.6 - (19.6) 24.1 (3.7) 35.4

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

91

  1. Provisions (continued)

Reservoir provision

The reservoir provision is the estimated cost of remedial or rectification works required to the Trust’s infrastructure assets. The amount provided represents the estimated cost of future works that the Trust is legally or constructively obliged to perform as a result of conditions present at the balance sheet date.

The reservoir provision comprises the following elements:

During 2019/20 an incident at Toddbrook Reservoir required immediate emergency rectification, following which a full review was carried out to assess the requirements to complete full restoration works and the estimated costs. The Trust has a constructive obligation to carry out the repair work as it has publicised its intention to do so including sharing plans of the completed project. The repair work started in 2020/21 and remains ongoing. The estimated future costs of works yet to be completed has been assessed and reflected in the provision as at 31 March 2024.

Activity during the year utilised £8.2m of the brought forward provision and there has been £12.1m of new requirements provided for during the year. The repair costs provided for are planned to be delivered in the 2024/25 year.

In its capacity as Undertaker (under the 1975 Reservoirs Act) for the reservoirs it manages, the Trust arranges independent reservoir inspections, as required by the Act, by All Reservoir Panel Engineers, who report to the Trust and the Environment agency (as the regulator for reservoirs in England) on the condition and safety of the reservoir. Following the publication of a report issued under section 10 of the Reservoir Act the Trust has a legal obligation to carry out the required works raised as Measures in the interest Of Safety (MIOS). Following receipt of the report the Trust establishes a project to address the requirements, including an estimate of the likely costs to satisfactory completion based on internally costed models or quoted delivery proposals from third parties. Where a reliable estimate is available a provision is recognised for the estimated costs for the work to be delivered in future periods.

During the year the Trust has recognised £22.5m of new provisions related to requirements outlined in new reports published up to 31 March 2024. £11.8m of the previously provided cost has been utilised in line with work delivered during the year.

Other provisions

These are provisions which are principally for property, motor and public liability claims against the Trust.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

92

  1. Financial instruments
Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
31 March 2023
31 March 2024		 31 March 2023
£m
£m
£m		 £m
Financial assets that are debt
instruments measured at
amortised cost:
Investments in subsidiaries
-
-
54.7		 56.7
Cash
23.9
35.4
18.4		 31.9
Current asset investments
10.0
2.7
10.0		 -
Trade debtors
33.9
36.2
33.8		 34.4
Other debtors
17.1
16.0
11.2		 10.6
84.9
90.3
128.1		 133.5
Financial liabilities
measured at
amortised cost:
Trade creditors
13.9
9.6
13.9		 9.6
Accruals
17.3
23.6
14.8		 21.0
Other amounts owed to
Group undertakings
-
-
13.6		 17.9
Other creditors
5.3
7.3
5.4		 7.3
Loan notes
150.0
150.0
150.0		 150.0
186.5
190.4
197.7		 205.8
Financial assets measured
at fair value through
profit and loss:
Investments in subsidiaries
-
-
24.4		 24.4
Investmentproperty
682.1
711.6
536.2		 567.6
Diversified investment funds
306.6
295.2
306.6		 295.2
988.7
1,006.7
867.2		 887.2

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

93

  1. Movement in funds

Group

Unrestricted funds Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset
fund
£m
Total
£m
At 1 April 2023
3.4
-
1.2
870.6
875.2
Income
213.9
-
21.7
1.7
237.3
Expenditure
(229.8)
-
(20.9)
(1.7)
(252.4)
Transfer to General fund
870.4
-
-
(870.4)
-
Transfer to Designated funds
(863.0)
863.0
-
-
-
Gains/(losses) on investments
10.2
(24.3)
-
(0.2)
(14.3)
SLP contribution to Pension Fund
(5.0)
5.0
-
-
-
Actuarial losses on defined benefit
pension scheme
-
(12.9)
-
-
(12.9)
At 31 March 2024
0.1
830.8
2.0
-
832.9

Restated Group

Unrestricted funds Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset
fund
£m
Total
£m
At 1 April 2022
2.8
7.9
1.3
1,030.3
1,042.3
Income
196.3
-
20.0
8.8
225.1
Expenditure
(213.7)
-
(20.1)
(14.1)
(247.9)
Gift aid receivable, dividends and
other transfers from subsidiaries
9.2
-
-
(9.2)
-
Transfer to General fund
5.8
-
-
(5.8)
-
Transfer from Designated funds
7.9
(7.9)
-
-
-
Gains/(losses) on investments
0.1
-
-
(62.0)
(61.9)
SLP contribution to Pension Fund
(5.0)
-
-
5.0
-
Actuarial losses on defined benefit
pension scheme
-
-
-
(82.4)
(82.4)
At 31 March 2023
3.4
-
1.2
870.6
875.2

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

94

  1. Movement in funds (continued)

Canal & River Trust

Unrestricted funds Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset
fund
£m
Total
£m
At 1 April 2023
11.2
-
1.2
827.8
840.2
Income
207.1
-
21.7
-
228.8
Expenditure
(223.4)
-
(20.9)
0.1
(244.2)
Gift aid receivable, dividends and
other transfers from subsidiaries
1.2
-
-
-
1.2
Transfer to General fund
827.7
-
-
(827.7)
-
Transfer to Designated funds
(826.7)
826.7
-
-
-
Gains/(losses) on investments
11.2
(25.6)
-
(0.2)
(14.6)
SLP contribution to Pension Fund
(5.0)
5.0
-
-
-
Actuarial losses on Defined Benefit
Pension Scheme
-
(23.8)
-
-
(23.8)
At 31 March 2024
3.3
782.3
2.0
-
787.6
Restated
Canal & River Trust
Unrestricted funds Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset
fund
£m
Total
£m
At 1 April 2022
10.5
7.9
1.3
974.0
993.7
Income
196.3
-
20.0
1.3
217.6
Expenditure
(213.7)
-
(20.1)
-
(233.8)
Gift aid receivable, dividends and
other transfers from subsidiaries
9.2
-
-
-
9.2
Transfer to General fund
13.7
(13.7)
-
-
-
Transfer to Protected asset fund
(5.0)
-
-
5.0
-
Gains/(losses) on investments
0.2
-
-
(55.9)
(55.7)
SLP contribution to Pension Fund
-
5.8
-
(5.8)
-
Actuarial losses on defined benefit
pension scheme
-
-
-
(90.8)
(90.8)
At 31 March 2023
11.2
-
1.2
827.8
840.2

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

95

22. Movement in funds (continued)

The designated funds include the following designated reserves which have been set aside for specific purposes:

specific purposes:
Group
Major asset Designated Total designated
failure fund investment fund funds
£m £m £m
At 1 April 2023 - - -
Transfer from General fund - 868.0 868.0
Losses on investments - (24.3) (24.3)
Actuarial losses on Defined Benefit
Pension Scheme		 - (12.9) (12.9)
At 31 March 2024 - 830.8 830.8
Group
Major asset Total designated
failure fund funds
£m £m
At 1 April 2022 7.9 7.9
Transfer to General fund (7.9) (7.9)
At 31 March 2023 - -

In June 2023 the Trust transferred the assets of the previously restricted ‘Protected asset fund’ to the General fund following changes to the Defra agreement as explained in Accounting Policy 1.19.d, and in March 2024 the Trustees designated these assets with the name of the Designated investment fund. The Designated investment fund has been established to maintain the value of the income generating assets used by the Trust to fund ongoing infrastructure expenditure and to preserve these assets for the future.

Canal & River Trust

Canal & River Trust
Designated
Major asset investment Total designated
failure fund fund funds
£m £m £m
At 1 April 2023 - - -
Transfer from General fund - 831.7 831.7
Losses on investments - (25.6) (25.6)
Actuarial losses on Defined Benefit
Pension Scheme		 - (23.8) (23.8)
At 31 March 2024 - 782.3 782.3

Canal & River Trust

Major asset Total designated
failure fund funds
£m £m
At 1 April 2022 7.9 7.9
Transfer to General fund (7.9) (7.9)
At 31 March 2023 - -

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

96

22. Movement in funds (continued)

Restricted income funds comprise:

Group and Canal & River Trust
Balance at Balance at
1 April 2023 Income
Expenditure
31 March 2024
£m £m
£m
£m
Friends fund - 3.5
(3.0)
0.5
Thirdpartyfundedprojects - 15.4
(15.4)
-
People’s Postcode Lottery 0.6 2.6
(2.5)
0.7
Other specificproject funds 0.6 0.2
-
0.8
Total 1.2 21.7
(20.9)
2.0
Restated Restated
Group and Canal & River Trust
Balance at Balance at
1 April 2022 Income Expenditure 31 March 2023
£m £m £m £m
Friends fund - 2.8 (2.8) -
Thirdpartyfundedprojects - 14.4 (14.4) -
People’s Postcode Lottery 0.7 2.5 (2.6) 0.6
Other specificproject funds 0.6 0.2 (0.2) 0.6
Total 1.3 19.9 (20.0) 1.2

Funds are restricted on the basis of activity type, activity within a defined geographical area or on a specific project basis. Funds are recorded as expended when they are transferred to meet the relevant expenditure being incurred.

All donations made to the Trust without any specific local or project specific restriction are added to the Friends fund from which expenditure is directed only to waterway maintenance, restoration or education activities.

Restricted funds with donations less than £1m are shown in one aggregate total as “Other specific project funds”. At 31 March 2024 there were 64 (2023: 59) separate funds within this total.

The Friends fund is held within Canal & River Trust and the Group, whilst all other funds are held within the Group.

Please refer to note 28 for details of the 2022/23 restatement.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

97

  1. Analysis of net assets by fund

Net assets are analysed between funds as follows:

Group

As at 31 March 2024
Unrestricted funds		 Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset fund
£m
Total
£m
Tangible fixed assets
33.4
20.0
-
-
53.4
Investments
-
998.7
-
-
998.7
Current assets
105.2
5.1
2.0
-
112.3
Current liabilities
(86.5)
(0.1)
-
-
(86.6)
Creditors – amounts falling due after
more than one year
(2.6)
(150.0)
-
-
(152.6)
Provisions
(49.3)
-
-
-
(49.3)
Pension liability
(0.1)
(42.9)
-
-
(43.0)
Total net assets
0.1
830.8
2.0
-
832.9

Group

As at 31 March 2023
Unrestricted funds		 Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset fund
£m
Total
£m
Tangible fixed assets
31.9
-
-
22.4
54.3
Investments
-
-
-
1,011.4
1,011.4
Current assets
96.0
-
1.2
23.9
121.1
Current liabilities
(85.6)
-
-
(3.5)
(89.1)
Creditors – amounts falling due after
more than one year
(3.3)
-
-
(150.0)
(153.3)
Provisions
(35.5)
-
-
(0.1)
(35.6)
Pension liability
(0.1)
-
-
(33.5)
(33.6)
Total net assets
3.4
-
1.2
870.6
875.2

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

98

  1. Analysis of net assets by fund (continued)

Canal & River Trust

As at 31 March 2024
Unrestricted funds		 Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset fund
£m
Total
£m
Tangible fixed assets
33.4
20.0
-
-
53.4
Investments
-
922.2
-
-
922.2
Current assets
91.0
-
2.0
-
93.0
Current liabilities
(69.0)
(17.5)
-
-
(86.5)
Creditors – amounts falling due after
more than one year
(2.7)
(150.0)
-
-
(152.7)
Provisions
(49.3)
-
-
-
(49.3)
Pension(liability)/asset
(0.1)
7.6
-
-
7.5
Total net assets
3.3
782.3
2.0
-
787.6

Canal & River Trust

As at 31 March 2023
Unrestricted funds		 Restricted funds
General
fund
£m
Designated
funds
£m
Income
funds
£m
Protected
asset fund
£m
Total
£m
Tangible fixed assets
31.9
-
-
22.4
54.3
Investments
-
-
-
943.9
943.9
Current assets
107.6
-
1.2
-
108.8
Current liabilities
(89.3)
-
-
(13.6)
(102.9)
Creditors – amounts falling due after
more than one year
(3.5)
-
-
(150.0)
(153.5)
Provisions
(35.4)
-
-
-
(35.4)
Pension (liability)/asset
(0.1)
-
-
25.1
25.0
Total net assets
11.2
-
1.2
827.8
840.2

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

99

  1. Operating lease commitments

Operating lease agreements where the Group is lessee

Future minimum rentals payable under non-cancellable operating leases are as follows:

Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
31 March 2023
31 March 2024		 31 March 2023
Leasehold properties
£m
£m
£m		 £m
Within oneyear
1.0
0.9
1.0		 0.9
Within two to fiveyears
3.6
3.1
3.6		 3.1
In more than fiveyears
99.6
99.8
99.6		 99.8
104.2
103.7
104.2		 103.7

During the year £1.4m (2023: £1.4m) was charged to the SoFA in respect of leasehold property rentals.

Operating lease agreements where the Group is lessor

Future minimum rentals receivable under non-cancellable rental agreements are as follows:

==> picture [484 x 220] intentionally omitted <==

----- Start of picture text -----
Group Canal & River Trust
Restated Restated
31 March 2024 31 March 2023 31 March 2024 31 March 2023
Investment Properties £m £m £m £m
Within one year 38.8 37.4 32.7 31.4
Within two to five years 127.7 126.9 103.5 102.7
Within six to 100 years 937.0 945.4 362.3 370.6
In more than 100 years 1,782.8 1,791.1 949.3 951.6
Other
Within one year 16.9 16.3 16.9 16.3
Within two to five years 41.5 43.6 41.5 43.6
Within six to 100 years 421.7 383.8 421.7 383.8
In more than 100 years 307.4 268.3 307.4 268.3
3,673.8 3,612.8 2,235.3 2,168.3
----- End of picture text -----

Amounts receivable under operating leases are calculated to the next contractual break date or the full term where there is no contractual break clause.

The total contingent rent recognised as income during the year was £2.9m (2023: £4.0m).

The leasing arrangements relate to a portfolio of commercial properties for rent, all of which are located in the UK.

Excluded from the above analysis are those rental agreements held under a tenancy at will basis.

The 2022/23 figures for investment properties lessor across the commitment periods ranging from within one year to over 100 years have been restated due to a misstatement in the prior year in calculating the amounts receivable for one of the leases.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

100

  1. Pension and other post – retirement benefits
Group
Canal & River Trust		 Group
Canal & River Trust
31 March 2024
31 March 2023
31 March 2024		 31 March 2023
£m
£m
£m		 £m
Defined benefit pension fund
(deficit)/surplus
(42.9)
(33.5)
7.6		 25.1
Otherpost-retirement benefits
(0.1)
(0.1)
(0.1)		 (0.1)
Employee benefit (liability)/asset
(43.0)
(33.6)
7.5		 25.0

Pension fund (deficit)/surplus – defined benefit pension

The defined benefit scheme, known as the Waterways Pension Fund (WPF or the Scheme), is a multi-employer scheme with the Trust being the principal employer. Other participating employers now include British Waterways Board (trading as Scottish Canals) and OCS Group UK Limited. The Scheme closed to future accrual on 30 September 2016 for employees of the Trust and the other participating employers at that time.

In accordance with the terms of the transfer from British Waterways, Scottish Canals is liable to make a fair share and proportionate contribution, as determined by the scheme actuary from time to time, towards any deficit that exceeds the valuation deficit as at the transfer date of 2 July 2012. Any future recovery of deficit attributable to Scottish Canals is under a contractual arrangement with the Trust.

Contributions to the Scheme are agreed between the Trust and the trustees of the WPF, after advice from the Scheme Actuary, as part of the triennial actuarial valuation of the Scheme. The last triennial valuation of the Scheme was carried out as at 31 March 2022. As at that date the market value of the Scheme’s assets (excluding members’ additional voluntary contributions) amounted to £658m and the value placed upon the benefits that had accrued to members was £622m. The Scheme was therefore £36m in surplus and 106% funded on an on-going basis. The market value of the Fund’s investment in Canal & River Pension Investments LP (SLP) (see below for more details) is included within the valuation of the Fund’s assets.

As the SLP provides an annual income of £5m until 31 March 2031 and a lump sum on cessation, which could give rise to proceeds over and above the market value at valuation date, additional contributions were not deemed to be required to eliminate the deficit at the valuation date. The next triennial actuarial valuation will be carried out as at 31 March 2025.

On 9 July 2012, the Trust made a special contribution of £106.0m to the WPF pursuant to the creation of a pension funding partnership (SLP) with the Trust. The Scheme invested £106.0m in the SLP, a limited partnership registered in Scotland. The Scheme will remain invested in this partnership until 8 July 2031 at which point the Scheme’s investment will be redeemed. The redemption value of the investment will be the lower of £125.0m or the valuation deficit in the Scheme at that time, with a minimum value of £0.01m, as assessed by the Scheme Actuary on a Technical Provisions basis. The Scheme is entitled to an annual distribution income from this investment of £5.0m per annum. In the year to 31 March 2024 the Scheme received £5.0m of income from the SLP investment.

An accounting judgement has been taken that the Scheme’s £50.5m (2022/23: £58.6m) interest in the SLP, which is a subsidiary of the Trust, does not represent a plan asset for the purposes of the Group consolidated financial statements because it is a non-transferable financial instrument issued by the Group and therefore, has not been taken into account in arriving at the Group pension scheme surplus/deficit presented in the Group consolidated financial statements.

The exclusion of the Scheme’s interest in the SLP from the Scheme’s assets results in a deficit of £42.9m in the Group financial statements. The Scheme’s interest in the SLP is included in the valuation of the Scheme in Canal & River Trust’s company balance sheet.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

101

25. Pension and other post – retirement benefits (continued)

The assumptions required for accounting purposes, under FRS 102 differ from the assumptions used for the Scheme’s technical provisions funding assumptions, and as a result, under FRS 102, the Scheme valuation for accounting purposes is different to the actuarial valuation. A SLP asset has been recognised in accordance with FRS 102 with further clarification sought from IFRIC 14 as under the Scheme trust deed and rules, the Trust has an unconditional right to its share of any surplus following the winding up of the Scheme.

The valuation of the Scheme used for FRS 102, section 28 ‘Retirement benefits’ disclosures has been based on the most recent actuarial valuation of the WPF at 31 March 2022 and updated to 31 March 2024 by independent qualified actuaries from Lane Clark & Peacock LLP. The liabilities attributed to the Trust reflect the Trust’s share of liabilities in the WPF.

The key assumptions used are as follows:

31 March 2024 31 March 2023
Discount rate
4.80%		 4.70%
Rate of increase in salaries
3.40%		 3.50%
Rate of increase for majority of pensions
in payment and deferred pensions
2.70%*		 2.80%
Rate of CPI inflation
2.70%		 2.80%
Members are assumed to take Members are assumed to take
25% of their pension as tax 25% of their pension as tax
Tax free cash
free cash		 free cash
92.5% of S3PMA_H (males) 95% of S3PMA_H (males)
92.5% of S3PFA_H (females) 95% of S3PFA_H(females)
CMI 2022 model, long term CMI 2021 model, long term
Post retirement mortality assumption
rate of improvement 1.25%
(smoothing factor 7.0)		 rate of improvement 1.25%
(smoothing factor 7.0)
Initial improvements of 0.00% Initial improvements of 0.00%

Using the adopted mortality tables, the future life expectancy at the normal retirement age of 63 is as follows:

31 March 2024 31 March 2023
Male currentlyaged 43
22.9		 23.2
Female currentlyaged 43
26.6		 26.8
Male currentlyaged 63
21.4		 21.7
Female currentlyaged 63
25.0		 25.3

The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

Assumption Change in assumption Impact on scheme liabilities
Discount rate Increase by 0.1%
Decrease by 0.1%		 Decrease by 1.3% (£5.4m)
Increase 1.3% (£5.4m)
CPI rate of inflation Increase by 0.1%
Decrease by 0.1%		 Increase by 1.0% (£4.2m)
Decrease by 1.0% (£4.2m)
Life expectancy Increase by one year
Decrease by one year		 Increase by 3.2% (£13.7m)
Decrease by 3.2% (£13.7m)

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

102

25. Pension and other post – retirement benefits (continued)

Amounts recognised in the Consolidated Statement of Financial Activities (SoFA):

Group
Year to 31 March 2024 Year to 31 March 2023
£m £m
Administration expenses
(0.8)		 (0.9)
Interest cost
(20.0)		 (15.1)
Interest on assets
18.5		 16.3
Amount charged within net income
(2.3)		 0.3
Actuarial loss
(12.9)		 (82.4)
Amount charged within net movement
in funds
(15.2)		 (82.1)

Amounts recognised in the balance sheet:

Amounts recognised in the balance sheet:
Group
Canal & River Trust
2024
2023
2024		 2023
£m
£m
£m		 £m
Equities 12.5
3.4
12.5		 3.4
Corporate bonds 112.5
110.6
112.5		 110.6
LDI (LiabilityDriven Investment) 170.0
199.2
170.0		 199.2
Propertyfunds 30.5
33.2
30.5		 33.2
Diversifiedgrowth funds 30.0
25.8
30.0		 25.8
Investment inpropertyinterest in SLP -
-
50.5		 58.6
Othergrowth assets 21.1
13.7
21.1		 13.7
Cash & liquidityfunds 8.0
12.1
8.0		 12.1
Total fair value of assets 384.6
398.0
435.1		 456.6
Present value of scheme liabilities (427.5)
(431.5)
(427.5)		 (431.5)
(Deficit)/surplus in the scheme (42.9)
(33.5)
7.6		 25.1

The actual return on the Scheme’s assets during the year was a £1.7m profit (2023: £177.7m loss) for the Group and a £6.4m loss (2023: £184.3m loss) for the Trust.

FRS 102 requires all Scheme assets to be valued at fair value for accounting purposes. As at 31 March 2024, the fair value of the Scheme’s investment in the SLP was £50.5m (2023: £58.6m).

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

103

25. Pension and other post – retirement benefits (continued)

Changes in scheme assets

Changes in scheme assets
Group
Canal & River Trust
2023/24
2022/23
2023/24		 2022/23
£m
£m
£m		 £m
At 1 April 398.0
589.6
456.6		 654.8
Interest on scheme assets 18.5
16.3
21.3		 18.1
Principal employer contributions 5.8
6.0
5.8		 6.0
Benefitspaid and expenses (20.9)
(19.9)
(20.9)		 (19.9)
Revaluation loss (16.8)
(194.0)
(27.7)		 (202.4)
At 31 March 384.6
398.0
435.1		 456.6

Changes in scheme liabilities

Changes in scheme liabilities
Group
Canal & River Trust
2023/24
2022/23
2023/24		 2022/23
£m
£m
£m		 £m
At 1 April (431.5)
(547.0)
(431.5)		 (547.0)
Interest cost (20.0)
(15.1)
(20.0)		 (15.1)
Benefitspaid 20.1
19.0
20.1		 19.0
Actuarialgain 3.9
111.6
3.9		 111.6
At 31 March (427.5)
(431.5)
(427.5)		 (431.5)

Movement in (deficit)/surplus in the scheme during the year

Group Canal & River Trust Canal & River Trust
2023/24 2022/23
2023/24		 2022/23
£m £m
£m		 £m
At 1 April (33.5) 42.6
25.1		 107.8
Expenses recognised in SoFA (2.3) 0.3
0.5		 2.1
Contributions 5.8 6.0
5.8		 6.0
Actuarial loss recognised in SoFA (12.9) (82.4)
(23.8)		 (90.8)
At 31 March (42.9) (33.5)
7.6		 25.1

Defined contribution pension plan

The defined contribution plan is a pension plan under which the Trust pays fixed contributions to Standard Life. The Trust has no legal or constructive obligations to pay further contributions. The amount of employer contributions (net of salary sacrifice contributions) is disclosed in note 9 in these financial statements. There were no material amounts owing or prepaid at 31 March 2024.

26. Capital commitments

Capital expenditure for which the Trust had contracted at 31 March 2024 was £0.2m (2023: £0.3m) relating to tangible fixed assets and £0.3m (2023: £1.2m) relating to the commitment to purchase investment property.

These commitments fall due within one year.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

104

  1. Related party transactions

The Trust has considered the disclosure requirements of the SORP for charities and FRS 102, section 33 ‘Related Party Disclosures’ and believes that the following related party transaction, which was made on an arm’s length basis, requires disclosure:

Jennie Price, Trustee, is the Chair of The Scout Association. In 2023/24 the Trust raised an invoice for £25,200 (2023: £25,200) to The Scout Association for services provided. As at 31 March 2024 £25,200 was unpaid (2023: £25,200).

Ian Peters, Trustee, is the Non-Executive Chair of IMServ Limited. In 2023/24 the Trust paid £9,839 (2023: £11,732) to IMServ Limited for services provided.

Stuart Mills, Chief Investment Officer, was a director of Sustrans Ltd, until 20 January 2024. In 2023/24 the Trust received £3,966,997 (2023: £706,381) from Sustrans Ltd for services provided and paid £nil (2023: £nil) to Sustrans Ltd for services provided for the period 1 April 2023 to 20 January 2024. These receipts were principally for towpath improvements funded from the Sustrans Ltd Paths for Everyone programme.

There were no other related party transactions between the Trust and any of the trustees or executive directors during the year.

Related party transactions of the above nature are permitted under Article 4.4.3 of the Trust’s Articles. The Board were aware of these transactions and agreed to their continuation. There were no amounts written off in relation to the above transactions.

No other trustees received any remuneration or other benefits from the Trust.

Amount
Amount
Amount		 Amount
receivable
receivable during
receivable/		 receivable/
during the year
the year to
(payable) at		 (payable) at
to 31 March 2024
31 March 2023
31 March 2024		 31 March 2023
Transactions with joint ventures £m
£m
£m		 £m
Property sales and investment
activity with joint ventures		 1.4
0.1
-		 -
Other significant transactions
with joint ventures		 0.1
0.1
-		 -
1.5
0.2
-		 -

The table above excludes capital and loan investments in joint ventures which are detailed in note 16 in these financial statements.

Amount
Amount
Amount		 Amount
receivable
receivable during
receivable/		 receivable/
during the year
the year to 31
(payable) at		 (payable) at
to 31 March 2024
March 2023
31 March 2024		 31 March 2023
Transactions with subsidiaries £m
£m
£m		 £m
Canal & River Trading CIC
Qualifyingcharitable donations -
8.1
-		 -
Canal & River Pension
Investments LP (SLP)
Profit sharepayments 1.2
1.1
-		 -
1.2
9.2
-		 -

Further details on our subsidiaries can be found in note 16 to these financial statements.

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

105

  1. Prior period restatement in respect of the classification of income and expenditure on third party funded projects

The 2022/23 figures for charitable income and expenditure have been restated due to a classification misstatement in the prior year. £14.4m of both income and expenditure relating to third party funded projects has been reclassified as restricted rather than unrestricted funds.

31 March 2023 31 March 2023 31 March 2023 31 March 2023
Previously reported Restated
Unrestricted Restricted Unrestricted Restricted
general fund Income funds general fund Income funds
£m £m £m £m
Income and endowments from:
Charitable activities		 76.5 - 62.1 14.4
Expenditure on:
Charitable activities		 (193.7) (5.7) (179.3) (20.1)

Financial Statements for the year ended 31 March 2024

Canal & River Trust Annual Report & Accounts 2023/2024

106

Membership of the Board of Trustees, Executive Team, Council and Committees

Board of Trustees as at April 2023 – March 2024

Title Appointed Term Committee Membership
David Orr CBE Chair September 2022 First Term Joint Council & Board
Appointments Committee
Dame Jenny Abramsky Deputy September 2016 Third Joint Council & Board
Chair Appointments Committee
(Chair),
Audit & Risk Committee
Nigel Annett CBE Trustee September 2016 Third Infrastructure Committee
(Chair),
Audit & Risk Committee,
Investment Committee
Janet Hogben Trustee September 2016 Third Joint Council & Board
Appointments Committee,
Remuneration Committee,
Infrastructure Committee
Sir Chris Kelly Trustee September 2017 Third Audit & Risk Committee (Chair),
Infrastructure Committee
Bronagh Kennedy Trustee September 2022 First Remuneration Committee,
Audit & Risk Committee
Ian Peters Trustee September 2022 First Investment Committee (Chair)
Jennie Price CBE Trustee September 2018 Second Audit & Risk Committee,
Infrastructure Committee
Tim Reeve Trustee September 2016 Third
Chris Fellingham Trustee September 2023 First Term Investment Committee
Sir James Bevan Trustee September 2023 First Term Infrastructure Committee,
Remuneration Committee
Sarah Whitney Trustee September 2018 Until September Investment Committee (Chair)
2023
Susan Wilkinson Trustee September 2017 Until September Remuneration Committee
2023
Executive Team
Role
Richard Parry Chief Executive
Heather Clarke Strategy& Impact Director
Steve Dainty Finance Director
Tom Deards Legal & Governance Director
Maggie Gardner Director of Fundraising
Anne Gardner-Aston Director of Health & Safety
Malcolm Horne Chief Infrastructure & Programmes Officer
Stuart Mills Chief Investment Officer
Karen Seth People Director
Julie Sharman Chief OperatingOfficer
Susie Mather Director of Communications & External Affairs

Membership of the Board Of Trustees

Canal & River Trust Annual Report & Accounts 2023/2024

107

Council Members as at 31 March 2024

Elected Members

Elected Members
Boating Business Heather Duncan(until January 2024)
Carl Onens(until January 2024)
Paul Donnelly (from January 2024)
LucyWaldron(from January 2024)
Private Boating Tim Allen(until January 2024)
Phil Prettyman(until January 2024)
Helen Hutt(until January 2024)
Dave Mendes da Costa(until January 2024)
Penelope Barber(from January 2024)
Fiona Burt(from January 2024)
Rosie Strickland(from January 2024)
Scott Martin(from January 2024)
Volunteers Ian McCarthy (until January 2024)
David Williams(until January 2024)
Nigel Branston(from January 2024)
Trevor Clark(from January 2024)
Angling/Fisheries David Kent
Friends Stella Ridgway (until January 2024)
Brian Williams(from January 2024)
Employee John Ellis(until January 2024)
Aaron Atwal(from January 2024)

Nominated Members

Co-opted Duncan MacKay (until January 2024)
TraceyClarke(until January 2024)
Louis Howell(until January 2024)
Danielle Obe(from January 2024)
Black SwimmingAssociation
Robyn MacPherson(from January 2024)
Friends
Private Boating Ben Seal
Paddle UK
Andrew Phasey
Association of WaterwayCruisingClubs
Inland Waterways Association Jonathan Edwards
Sue O’Hara(from January 2024)
Other supporters Mark Riches
CountryLand & Business Association
Heather Clatworthy (from January 2024)
Ramblers
Sophie Gordon
Cycling UK
Dunnan Dollimore(from January 2024)
Tim West
Commercial Boat Operators Association
Historic Environment Dr Nigel Crowe
Institute of Historic BuildingConversation
Patrick Moss
Railway& Canal Historical Society
Natural Environment TerryFuller(until January 2024)
Chartered Institute of Water and
Environmental Management
Paul Shaffer(from January 2024)
Ali Morse
The Wildlife Trusts
Local Government Cllr Peter Thornton(until January 2024)
Local Government Association
Cllr Paul Dennett(from January 2024)
Graeme McDonald
Societyof Local AuthorityChief Executives
Disability TraceyClarke(from January 2024)
Accessible Waterways Association
Youth Engagement David Watts(from January 2024)
UK Youth

Council Members as

Canal & River Trust Annual Report & Accounts 2023/2024

108

at 31 March 2024

Regional Advisory Boards Chairs
East Midlands Anil Majitha
London & Southeast Sir Peter Dixon
Northwest Prof Nigel Weatherill(until September 2023)
Dharma Kouvvi(from September 2023)
Southwest David Hagg (until March 2023)
John Podmore(from September 2023)
West Midlands John Hudson OBE
Yorkshire & Northeast Helen Grantham
Bwrdd Glandŵr Cymru Steve Thomas CBE

Bwrdd Glandŵr Cymru as at 31 March 2024

Steve Thomas CBE ( Chair ) Phil Hughes Peter Ogden Paul Thomas Celia Jenkins Owen Davies

Regional Advisory Board as at 31 March 2024

Regional Advisory Board as at 31 March 2024
East Midlands Anil Majithia(Chair)
TerryCavender
Nigel Cooke
Ahtesham Mahmood
AndyOughton
Kamla Pattni
Adrian Honeybill
London & South East Sir Peter Dixon(Chair)
David Brough
Louis Howell
Matthew Hunt
Loraine Butler
North West Prof Nigel Weatherill DL(Chair) (until September 2023)
Dharma Kovurri(Chair) (from September 2023)
GerryProctor MBE
Rt Hon Sir Robert Atkins
Lukman Patel
South West David Hagg (Chair until March 2023)
John Podmore(Chair from September 2023)
David Fearns
BryonyHoulden
MaryHutton
Julian Atkins
West Midlands John Hudson OBE DL(Chair)
John McNicholas
Dean Hill
Naseem Aktar BEM
Cllr Liz Clements
Yorkshire & North East Helen Grantham(Chair)
Adrian Curtis
Caroline Thorogood
Nick Garthwaite
Jon Ingham
Gillian Allan
Dr Christina Edgar
Zulfi Hussain

Council Members as

Canal & River Trust Annual Report & Accounts 2023/2024

109

at 31 March 2024

Advisory Groups as at 31 March 2024 Advisory Groups as at 31 March 2024
Fisheries & Angling Andrew Strickland(Chair)
Paul Coulson
John Ellis
Paul Edwards
Sue Galloway
David Kent
Michael Heylin
Dennis Hunt
David Ottewell
Mark Parry
Lee Woodhouse
Rob Harris
Navigation Mike Carter(Chair)
Sue Cawson
Nick Grundy
John Hatton
Gareth Jones
Ian McCarthy
Nigel Stevens
Lee Wilshire
Hannah Rigley
Youth Engagement Louis Howell(Chair)
Lydia Wright
John Downes
Michelle Hemmingfield
Vanessa Joseph
HollyNotcutt
Kristen Stephenson
Cultural Heritage Nigel Barker-Mills(Chair)
Elizabeth Adams
Dr Nigel Crowe
Lizzie Glithero-West
Dr Jennifer Hagan
Rebecca Madgin
Neil Redfern
David Rudlin
Sandar Stancliffe
Environmental Ed Mitchell(Chair)
Dr Bruce Lascelles(Vice chair)
Professor Rafid Al Khaddar
Caroline Essery
LindsayFrost
Duncan Mackay
Ash Girdler
Peter Birch

Council Members as

Canal & River Trust Annual Report & Accounts 2023/2024

110

at 31 March 2024

Supporters of Canal & River Trust

Thank you to everyone who has donated, volunteered, or supported our work. Volunteers, youth and community groups, canal societies and clubs have joined with us to help transform our canals and rivers. These unpaid hours have made our work possible. We are very grateful to the thousands of individuals who have joined us as Friends of the Trust or who have given personal donations to support our work. We would also like to thank and acknowledge all those who gave a gift in their will or in memory of a loved one this past year. These very personal gifts are very much appreciated and have a significant impact on the positive work of the charity.

Thank you to the following Charitable Trusts, Grant-making bodies, landfill operators, local authorities, lotteries etc (£1,000+)

Amazon UK

Active Black Country Active Travel England Arts Council England Bank of America Baron Davenports Charity Bath & North East Somerset Council Blaby District Council Black Country Consortium Ltd Blackburn with Darwen Borough Council

Buckinghamshire Council Burnley Borough Council

Campaign to Protect Rural England Northamptonshire Canoe Foundation Charnwood Borough Council Cherwell District Council

Chorley Council Cononley Parish Council

Department for Communities & Local Government

Duchy of Lancaster Benevolent Fund

East Staffordshire Borough Council Finastra Gale Family Trust Generation Foundation Gloucester City Council Greater London Authority & Mayor of London Greenham Trust Ltd Groundwork Halton Parish Council Harborough District Council

Haribo Happiness Fund Harris Charity Helen Jean Cope Charitable Trust

Hemel Garden Communities Hertfordshire County Council Historic England Hinckley Borough Council Hyndburn Borough Council Ingestre with Tixall Parish Council

James Beattie Charitable Trust John R Murray Charitable Trust Kirklees Metropolitan Council Lancashire County Council Leicester City Council Loughborough Town Deal London Legacy Development Corporation London Borough of Hillingdon London Borough of Ealing

Marjorie Boddy Charitable Trust National Lottery Community Fund National Lottery Heritage Fund Nottingham City Council

Oadby & Wigston Borough Council

Odd Rode Parish Council Old Oak and Park Royal Development Corporation Oxfordshire County Council Oxford City Council Pendle Borough Council Players of People’s Postcode Lottery Powys County Council

Rushcliffe Borough Council Sandwell MBC Severn Trent Water Ltd Shropshire County Council Solihull Metropolitan Borough Sport Birmingham Staffordshire County Council Staffordshire Police & Crime Commissioner Staffordshire Wildlife Trust Stephenson Halliday Sustrans Environment Agency Ernest Cook Trust

Lionel Abel-Smith Trust North of England Zoological Society

The Philip and Irene Toll Gage Foundation The Rachel Kay Shuttleworth textile collections The Fort Foundation

The Island Quarter

UK Community Renewal Fund UKH Foundation University of Oxford Walsall Council West Lancashire Borough Council West Yorks Passenger Transport Executive West Midlands Police & Crime Commissioner Westminster City Council Westmorland and Furness Council Whitbred PLC Chairmans Fund

Supporters of Canal & River Trust

Canal & River Trust Annual Report & Accounts 2023/2024

111

Patron

HM The King

Chair

David Orr, CBE

The Trust’s Advisors

Bankers:

Natwest Bank Plc City of London Office PO Box 12258 Princes Street London EC2R 8PA

Deputy Chair

External auditors:

Dame Jenny Abramsky

BDO LLP Bridgewater House Counterslip, Bristol BS1 6BX

Internal Auditors:

Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG Investment Managers:

Partners Capital 5 Young Street London W8 5EH

Canal & River Trust Annual Report & Accounts 2023/2024

112

Patrons

Canal & River Trust

National Waterways Museum Ellesmere Port South Pier Road Ellesmere Port Cheshire CH65 4FW

Canal & River Trust is a charitable company limited by guarantee registered in England & Wales with company number 07807276 and charity number 1146792.

All information correct at the time of publication

Enjoy. Take Action. Volunteer. Donate canalrivertrust.org.uk 0303 040 4040

Front and back cover: Bingley Five Rise Locks, Leeds & Liverpool Canal