Navigating the CRT’s New Licensing Surcharge: A Closer Look
The Canal & River Trust (CRT) has introduced a new surcharge on boats without home moorings, increasing from 5% to 25%, which has caused some confusion and concern among the boating community. This “glide path” policy, involving incremental and differential license fee pricing from now until 2028, has sparked debate about its transparency and impact on boaters.
Immediate Impact on License Fees
Starting in April 2024, boaters without home moorings will face a 5% surcharge on top of the already planned increases to the standard license. This is significant given that standard license fees have already risen by 18% from 2022 to 2024. For instance, the fee for a narrowboat with a home mooring increased by 6% this year alone. Adding the 5% surcharge, plus additional penalties for wider boats, results in an 11% increase for narrowboats without a home mooring, 25% for 10ft wide-beams, and 39% for 14ft wide-beams. Consequently, many boats will experience a cost rise above 25% in the first year alone.
Long-Term Projections
According to cautious estimates, narrowboats with home moorings could see their standard license fees rise by 31% by 2028, considering a projected annual increase of 4% based on the Consumer Price Index (CPI) plus an additional 1.5%. CRT aims to raise revenue from license fees by an average of CPI plus 3%, with the bulk of this increase impacting boats without home moorings and wider boats in Bands 2 and 3.
By 2028, narrowboats without a home mooring could face a minimum fee rise of 61% above the base rate. For 10ft wide-beams, this could be 97%, and for 14ft wide-beams, 130%. These figures represent minimum estimates and do not account for potential higher inflation rates or further CRT-imposed increases.
Changes in Cost Projections
Previously, CRT provided published tariffs to help boaters budget for price rises. However, these have been replaced by online calculators that individualize and obscure costs. CRT only provides projections for the next five years (2023-2028), despite having a 10-year financial plan. This lack of long-term clarity, combined with the possibility of further increases beyond 2028, adds to the financial insecurity for boaters.
In 2022, CRT increased license fees twice in one year, indicating that future increases could be similarly unpredictable. CRT uses the government-published CPI from November of the previous year and adds an additional percentage increase, currently totaling 6% for a standard license in 2024.
The Call to Action
The potential financial burden on boaters without home moorings is substantial and growing. As a smaller, tight-knit community, boaters have the potential to organize and advocate for fairer treatment. This new reality underscores the importance of collective action and engagement with CRT to ensure a more predictable and equitable licensing system.
Boaters must stay informed, voice their concerns, and collaborate to address these changes. The financial future may be uncertain, but a united community can influence CRT policies and protect their way of life.
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