‘This notice of the confirmed level of government grant for the 2007/08 financial year helps us to plan our maintenance works for the 2,200-mile canal network at a time when we are creating our business plans for the same period,’ said BW’s chief executive Robin Evans.

We remain committed to delivering improved, enhanced and secure waterways that welcome millions of visitors each year, her added. ‘The hard work of BW and many others over recent years to regenerate the waterways network will provide a firm foundation upon which the network can thrive in the 21st century.’

Evans said they had anticipated a similar cash settlement for 2007/08 following extensive discussions with the waterways minister and Defra officials over the last few months, so the announcement did not come as a surprise.

‘Our innovative approach to growing our own income for a secure waterways network goes hand in hand with our continuing focus on greater efficiency,’ he said. ‘These two aspects of our work will continue to deliver improvements to the fabric of the historic network for the benefit of communities across the UK.’