The Cabinet Member for Environment Decisions was scheduled to discuss the Basingstoke Canal Authority (BCA) partnership, including the final outturn for 2023/24, the revised budget for 2024/25, the forward budget for 2025/26, and the scheme of charges for approval. The Basingstoke Canal is managed in partnership with Hampshire County Council, who own the section of the canal within Hampshire. The report pack includes an annual update report on the canal.

Here are the topics that were scheduled to be discussed in greater detail:

Basingstoke Canal Authority Update

The Cabinet Member for Environment Decisions was scheduled to review the annual update report on the Basingstoke Canal Authority’s performance. The report pack includes a recommendation to approve the BCA partnership’s final revenue outturn for 2023/24, the revised revenue budget for 2024/25, and the forward revenue budget and scheme of charges for 2025/26, subject to a parallel decision by the Hampshire County Council Executive Lead Member for Universal Services.

The Basingstoke Canal is owned by Surrey and Hampshire County Councils and is used for public recreation, conservation as a Site of Special Scientific Interest (SSSI), and as part of the local drainage network. The canal is vulnerable to climate change, particularly heavy rainfall and drought, due to the deterioration of aging assets. These risks are mitigated through active management and a 24-hour duty system.

The BCA operates as a joint partnership to manage the risks and benefits of owning the canal for both councils. The annual update report outlines the proposed budget and scheme of charges, which allows the BCA to operate at a level required to deliver each council’s statutory duties for a further 12 months.

The report pack notes that the new governance arrangements, which followed a review by external consultants, were designed to move the canal partnership towards greater financial sustainability and return the canal to its core purpose of meeting statutory requirements. Some non-statutory BCA activities were transferred out of the partnership to reduce costs, and the canal partnership now exists between Surrey and Hampshire County Councils as the landowners.

The report pack states that the BCA remains reliant on access to its reserves to balance the budget due to the withdrawal of funding from riparian council contributors. Hampshire and Surrey County Councils will need to jointly consider reducing expenditure, sourcing alternative funding, or increasing their funding contributions once the reserves are fully depleted, which is projected to occur by 2027/28 if no changes are made.

The BCA has the following key objectives:

• Public safety: Including the safety of staff, volunteers, residents, and visitors, and the prevention of flooding through management of assets and water levels.
• Conservation value: To achieve or exceed the statutory obligations of the owners in relation to nature conservation and biodiversity value.
• Health and wellbeing: To achieve or exceed the statutory obligations of the owners to provide public access to the countryside and to maintain a public navigation.

The BCA also facilitates voluntary effort to support the canal, with 24,700 volunteer hours recorded over the year, a 24% increase on 2023/24.

The Basingstoke Canal Joint Board (BCJB), made up of two members each from Surrey and Hampshire County Councils, scrutinised the management decisions and recommended the approval of the BCA partnership’s final outturn for 2023/24, the revised budget for 2024/25, and the forward budget and scheme of charges for 2025/26. Councillor Paul Deach was appointed to Chair the Board at a meeting on 31 January 2025.

Financial Matters

The report pack includes the BCA's accounts, prepared by the Hon Treasurer to the partnership (currently Hampshire County Council). The final accounts for 2023/24 show a draw from reserves of £107,000 to balance the budget, leaving a general reserve balance of £589,000, with an additional £80,000 ringfenced for towpath maintenance at the Wellesley development.

The revised budget for 2024/25 and the forward budget for 2025/26 reflect planned draws from the BCA’s reserves of £99,000 and £217,000 respectively. After accounting for interest received, the general reserves balance is budgeted to decrease to £334,000 by the end of March 2026 if no other action is taken. The Wellesley reserve is budgeted to remain at £80,000.

The proposed Scheme of Charges for recreational activity on the Canal for the 2025/26 financial year includes increases to most charges (primarily for boat licensing and mooring fees) in line with the Consumer Price Index (CPI). Larger increases are proposed for licensing larger events exceeding 500 participants to ensure that staff time costs are fully recovered. A new scheme of charges is proposed for angling, with a staged increase in fees, to bring them in line with market rates.

Other Implications

The report pack notes that the proposed decision is for the continuance of an existing service, with no changes in the provision of service envisaged due to the level of budget set. Where charges have been increased, these are in line with inflation, resulting in a neutral impact on all groups, including those with protected characteristics.

The report pack also notes that the BCA staff operate under the policies and procedures of Hampshire County Council, and all activities are covered by the net zero policies of Hampshire County Council. A climate change adaptation assessment reveals that the canal is susceptible to climate change from both high precipitation and hot dry weather events, which can be mitigated against by continuous monitoring and management of water levels.